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Coca-Cola South Africa has suspended relations with McKinsey, the world’s biggest management consultant, due to its recent ties to an associate of the controversial Gupta family.
Coke and its bottling company say they will not work with McKinsey “until external investigations into political corruption are completed,” according to The Financial Times.
The FT calls Coke’s decision is a “significant blow” to McKinsey, which it reports “has struggled to draw a line under its reputational blow in South Africa.”
The management consultant has apologized for making “several errors of judgement: in its work with Trillian Capital.
The Gupta family has been accused of using its ties to South Africa president Jacob Zuma to influence state contracts. The Guptas and Zuma have denied the allegations.
Sasol, the South African energy giant, also has decided not to give future work to McKinsey due to the Gupta allegations.
UK-based Bell Pottinger imploded after it was charged with running a racist PR campaign in South Africa on behalf of the Guptas.
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