FT News Briefing Bain under fire for enabling South Africa corruption
Jan 17, 2022
A pension fund from British Gas controversially invested in the Israeli spyware company NSO Group, raising questions about financial ethics. In a significant market shift, European electric vehicle sales have now overtaken diesel. The discussion also delves into Bain's tumultuous role in South Africa's state capture crisis under Jacob Zuma, revealing how the consulting firm contributed to the country's corruption scandal. The implications for other firms operating in such fragile environments are stark and critical.
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Pension Funds and Spyware
- British Gas' parent company, Centrica, used pension funds to invest in a private equity fund that bought NSO, an Israeli spyware maker.
- This happened in 2019, and Centrica wouldn't have initially known their money would be used for this purpose.
NSO's Controversial Spyware
- NSO Group develops spyware used to hack phones, impacting journalists and activists.
- The US Department of Commerce blacklisted NSO for supplying spyware to foreign governments.
Bain & Company's Role in South African Corruption
- Bain & Company is under scrutiny for its involvement in state corruption in South Africa under former President Jacob Zuma.
- An inquiry found that Bain's consulting work facilitated the purging of officials who opposed Zuma's agenda.