United States – Some of the lawmakers are Congressman John Moolenaar, Senator Marco Rubio, and Senator Joni Ernst have petitioned DoJ and DoD to investigate McKinsey & Company. The lawmakers claim that the firm is likely to be in violation of the US laws since the firm has conflicts of interest having business with the Chinese go vernment while at the same time tendering contracts with the US government, as reported by Reuters.
Non-Representation of Chinese Government Work
McKinsey’s lack of disclosure on its dealings with People’s Republic of China was pointed out by the lawmakers in letters that was written on October 17 and made public on Friday. Some of the contractors are McKinsey, L3 and Harris, they accused the former of submitting bids for contracts that it did not declare actual or potential conflict of interests with DoD vendors as required by the federal rules.
Security Issues Invoked
The lawmakers said that McKinsey’s operations with the Chinese authorities, which they described as a potential threat to the USA, might have been against federal law. Since 2008, McKinsey received more than US $470 million in DoD contracts that include programs concerning military systems such as the F-35 fighter jet, research on efficiency in naval shipyards, and microchip production.
McKinsey’s Work on China’s Economic Strategy
Besides the contracts with the American state bodies, the Consultant has worked for many Chinese ministries, including National Development and Reform Commission, responsible for preparing Chinese five-year plans for the economic development. The lawmakers pointed out that the plans were prepared by McKinsey, including the 13th five-year plan, and also collaborated with large SOEs like China COSCO Shipping Corporation Limited and China Communications Construction Company Ltd, as reported by Reuters.
McKinsey and Government Agencies Silent
McKinsey and the government agencies involved have not responded to the matter. The organisation has issued a disclaimer about the consulting work happening in china’s five year plans saying that while it is true that the company was involved the work was done through the mekinsey global institute and the urban china initiative and not through the firm.