Global consulting giant Bain & Company is shutting down its consulting operations in South Africa, years after a damaging scandal and a 2022 government ban tarnished its reputation.
The firm confirmed the closure in a statement on Tuesday, following a report by the Financial Times.
“We are winding down consulting operations in South Africa,” Bain said.
“In May, we informed our local teams that our Johannesburg office will become a services hub supporting Bain’s global operations.”
Bain was banned from conducting business with the South African government in 2022 after being implicated in “corrupt and fraudulent practices” involving a contract with the South African Revenue Service (SARS) during the presidency of Jacob Zuma.
The scandal centered on Vittorio Massone, Bain’s former South Africa managing partner, who reportedly worked closely with Zuma in ways that breached standard procedures.
The fallout extended beyond South Africa, with the UK government also temporarily suspending Bain from competing for public contracts.
Despite the backlash, Bain has challenged the ban in court, arguing it was unconstitutional and seeking to overturn the decision by the National Treasury and SARS.
South African President Cyril Ramaphosa has said that over 500 billion rand (~$28 billion) was stolen from the state during Zuma’s tenure.
Other major consultancies, such as McKinsey and KPMG, were also caught up in the broader state capture scandal.
Like Bain, they have faced intense scrutiny and have since paid back fees or accepted penalties to address misconduct linked to their operations in the country.