By Louis Goss
Bain & Co is set to challenge the Cabinet Office’s decision to ban it from competing for government contracts, via a judicial review.
The US consultancy has applied for a judicial review of the Cabinet Office’s decision last month to ban the firm from tendering for UK government work, the Financial Times reported.
The UK government three-year ban follows claims the Boston firm facilitated “state capture and corruption by the South African government.”
A Cabinet Office spokesperson said: “It remains our view that Bain should be excluded from competing for Cabinet Office business for three years and guidance has been issued to other departments to do the same”.
“The government will strongly defend this position,” the cabinet office spokesperson said.
The ban came after Jacob Rees-Mogg reviewed evidence around Bain & Co’s alleged role in the South African corruption scandal, that reportedly saw former South African president Jacob Zuma and a cabal of his associates “capture” the South African government’s revenue service.
In a letter to Bain & Co last month, Rees-Mogg informed the US firm it would be “excluded” from taking part in UK government tenders for three years.
Although, Cabinet Office officials had initially advised that no action against Bain & Co was necessary, Rees-Mogg sought furter advice, including from an external barrister, before banning the Boston firm.
Rees-Mogg’s review came after veteran anti-apartheid campaign Lord Peter Hain called for Bain & Co to be blacklisted over its role in the South African corruption scandal.
The UK government ban comes as KPMG and McKinsey have also faced scrutiny over their alleged roles in similar South African corruption scandals, particularly in relation to their links to the embattled Gupta family.
Bain & Co have been approached by City A.M. for comment.
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