Johannesburg – National Treasury is in the dark about the number of contracts controversial Boston-based firm Bain & Company has with state entities, following a recommendation by the chair-person of the State Capture Commission, Judge Raymond Zondo, that all the company’s state contracts be investigated.
Following evidence before Zondo, the acting chief justice last week recommended that all Bain’s contracts with “state departments and organs of state be re-examined to see whether they complied with the relevant statutory and constitutional provisions”.
Bain was found to have played a key role in weakening the South African Revenue Service (SARS) with the assistance of the entity’s former boss Tom Moyane.
Bain in 2018 paid SARS back R217-million for its botched restructuring of SARS.
Zondo called on law-enforcement agencies to conduct such investigations as “may be necessary with a view to enabling the National Prosecuting Authority to decide whether to initiate prosecutions in connection with the award of the Bain contracts”.
In a written response, the National Treasury said: “There is no record of existing current contracts between government and Bain & Co.
For entities, National Treasury is not able to see contracts for entities due to various distinct supply chain management systems.”
Zondo found that Bain had laid plans “to restructure entire sectors of the South African economy” and centralise state procurement.
Kganki Matabane, the CEO of the Black Business Council, said the organisation was calling for strong consequences for Bain.
“The BBC is of the view that companies such as Bain & Co should be blacklisted and prevented from doing business with the state.
Reimbursing the state and getting off scot-free makes a mockery of our legal system and does not constitute sufficient punishment for wrongdoing.
“Repayment of R200-million with interest is a clear admission of guilt by Bain,” he said.
Athol Williams, a former senior partner at Bain who blew the whistle on the company’s underhanded business dealings, said the firm had scored lots of contracts with the government. He left the company in 2019.
“I don’t know what Bain has now [state contracts] … but during the [Jacob] Zuma years they worked across many state entities earning R2-billion,” he said.
Testimony before Zondo showed that erstwhile Bain’s managing partner for South Africa, Vittorio Massone, held more than 13 meetings with Zuma between 2012 and 2016.
Massone is said to have also known about Moyane’s appointment as SARS commissioner a year earlier, and to have started “grooming” him for the post.
Bain could not be reached for comment.
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