A group of US legislators, including Senator Marco Rubio and Senator Joni Ernest, have called for a probe into McKinsey & Company’s failure to disclose their work with China’s government.
In letters sent to the Department of Justice and the Department of Defense on October 17, and made public Friday, the lawmakers called for a review of McKinsey’s eligibility to work with the US Government.
The lawmakers expressed concern over McKinsey’s potential conflicts of interests, especially regarding US national security.
They cited federal regulations requiring the consulting company to disclose any activities which could pose a potential conflict of interest, especially its dealings in China. The letters stated,
Our review of Department of Defense documents revealed that McKinsey failed to disclose in many cases its work with (the People’s Republic of China), when acquiring DoD contract.
McKinsey’s work with US Defense and Chinese Government
Since 2008, McKinsey was awarded over $470 millions in DoD contracts. These include work on sensitive projects, such as the F-35 Fighter Jet Program, and studies related to US Navy Shipyards and advanced Microchips.
The lawmakers claim that McKinsey did not disclose its concurrent advisory work with Chinese government agency.
McKinsey, in particular, has worked with Chinese state-owned firms like China COSCO Shipping Corporation and China Communications Construction Company to develop their five-year economic plan.
The involvement of Chinese government agencies in the handling of US defense contracts has raised concerns about national security risks.
McKinsey tries to distance itself from China’s work
McKinsey tried to distance itself from the work it did on China’s Five-Year Plans by attributing advisory roles to its McKinsey Urban China Initiative and McKinsey global institute.
The lawmakers, however, called this “misleading”, claiming that McKinsey controls both entities and is therefore involved in China’s strategic plans.
The lawmakers concluded that McKinsey’s activities could pose significant risks to US security. They urged the DoD and DoJ, to investigate the matter thoroughly.
McKinsey has not yet made a comment on the situation.
This post US lawmakers demand investigation into McKinsey’s China ties could be modified as new developments unfold.
This site is for entertainment only. Click here to read more
