Bain sets aside R164m fees from its work with SARS
Bain & Company announced on Sunday that its global board had approved to set aside all of the R164-million of fees‚ plus VAT and interest‚ from its work with SARS.
It said in a statement that this money would be used either as prescribed by the Nugent Commission of Inquiry or – in the absence of such prescription - for the benefit of South Africa.
“In the latter instance‚ we will seek guidance from business‚ government and civil society leaders on how these funds can best be used‚” the company stated.
The company said that during the first week of an independent investigation it had launched and which was led by the global law firm Baker McKenzie it had learned that its engagement with SARS “fell short of our operating principles”.
“In addition‚ we do not want to benefit from work that was used to further a different agenda than was intended‚” it said.
It added that it continued to cooperate voluntarily with the Nugent Commission of Inquiry.
“Additional developments include Vittorio Massone stepping down as managing partner. Tiaan Moolman‚ a long serving member of the Bain partnership‚ will step in to run our South African operations in the interim.
“To reinforce the independence of the investigation and Bain’s commitment to addressing any new facts‚ we have established an oversight committee made up of senior global Bain partners. Athol Williams‚ a Bain alumnus and a respected independent advisor‚ will chair this committee on an interim basis. He is a distinguished academic in the areas of corporate responsibility‚ a corporate leader‚ and lifelong social advocate. Bain’s contract with Mr Williams calls for him to do what is right for South Africa‚ without restrictions‚” the company said.
It added: “Bain continues to be committed to our people‚ our clients and to South Africa. We are actively exploring additional ways to be part of the solution to creating prosperity in the country. We will be seeking guidance from multiple stakeholders in this process.”