McKinsey: Unpaid taxes, aborted missions, soaring budgets … 5 impressive examples revealed by the Senate

Essential
McKinsey, a close adviser to the Macron government, has been accused of tax evasion, but reports on its activities have been released by the Senate. Internally, some striking examples of a budget of millions of euros were sometimes assigned to the company for missions with no results.

The Senate released a report on “increasing influence of consulting firms on public policy” on Monday, March 16. This document constantly mentions McKinsey, a consulting firm close to Emmanuel Macron and at the heart of tax evasion cases. Midi dispatch Here are five great examples that the Senator has revealed in the survey.

  • 10 years unpaid tax

This is a major accusation caused by a Senate investigation. Consulting firm McKinsey has not paid taxes to its French subsidiary for 10 years. According to the report, the payment was “zero euros for at least 10 years.” According to the Senate, McKinsey “will achieve sales of € 329 million in the country in 2020, of which about 5% is in the public sector and employs about 600 people.” ..

Karim Tajedin, deputy director of McKinsey France, has denied tax evasion charges.

  • Abandoned mission of pension reform

On November 21, 2019, Caisse Nationale d’Assurance Vieillesse ordered McKinsey for consulting services. Objective: To shed light on future transformation of CNAV with a view to government-led pension reform. This task takes place two months before the bill is submitted to the Council of Ministers. For five months, McKinsey worked on defining a transformation program and establishing 31 projects that are key to the program’s impetus. Result: A 50-page guide for site administrators.

However, the McKinsey logo will not appear on the deliverables. It has been replaced by annuity insurance. After that, CNAV said he was happy with the service. Problem: McKinsey’s mission does not provide clear follow-up, as the Universal System Reform Project was abandoned by Emmanuel Macron in November 2021, especially due to the coronavirus health crisis. Missions costing nearly € 1 million or more than € 2,700 per consultant per day with no concrete results.

“In 2019, McKinsey benefited from the National Old-Age Insurance Fund for € 920,000 to help prepare for potential pension reform. What was McKinsey’s role?” @ElianeAssassi pic.twitter.com/bkjQs9GQiX

— Senate (@publicsenat) January 18, 2022

  • € 500,000 flop in the teaching profession

Among the costs discussed in the Senate is this study conducted on the teaching profession of DTIP (Inter-Ministry of Public Transformation). McKinsey then provided scientific research and graphic compilations based on public data from the Organization for Economic Co-operation and Development (OECD) with a budget of € 496,800. Despite the result of satisfying DTIP, it is reserved to “repeat many times to meet the expectations of the Ministry of Education”.

And, again, this financial investment of nearly € 500,000 has no consequences. The problem was not only the cancellation of the UNESCO symposium scheduled for March 2020 due to the health crisis, but also the inadequate use of particularly incomplete reports. According to the National Ministry of Education, the study produced by McKinsey “cannot judge the direct results.”

The well-known mission for the future of the teaching profession is the subject of case studies. 299

According to Educ nat, he paid 500,000 euros, so “the direct consequences of McKinsey’s teaching profession report cannot be determined.” https: //t.co/iCoHNjbWuG pic.twitter.com/o0s2PjSS7n

— Elisa Braun (@ElisaBraun) March 17, 2022

  • € 4 million for APL reform and two years delay

APL reform is one of the largest budgets allocated to the McKinsey Cabinet. Nearly 4 million euros that wasn’t actually planned … Sure, McKinsey’s mission lasted only three weeks, but the reforms initially applied from January 1, 2019 are final. Does not apply until 2 years later.

The problem is many delays caused by problems related to system computer flaws and security issues. McKinsey was awarded three times in the range of € 400,000 to € 2 million.

Not only taxis, but also some expensive mistakes due to political tempo and very mysterious operations …

u25b6 ufe0f McKinsey was paid € 4 million due to the lack of APL reform pic.twitter.com/dZEcOvk8hg

— Elisa Braun (@ElisaBraun) March 17, 2022

  • McKinsey, Executive Arbitrator?

This is the controversial point that the Senate report shows. The involvement and impact of consulting firms on decision making. McKinsey is no exception. In 2019, the government decided to penalize the overuse of fixed-term contracts by introducing a “bonus / mars”, an adjustment of the corporate social security burden. The main organizations involved are the Mutualité social agricole (MSA), Pôle Emploi, and the Central Social Security Institution (ACOSS).

Although the debate has proven difficult, McKinsey, along with DTIP, is being asked to provide a “neutral and independent view of the complex relationships of the actors involved.” The company organizes meetings and gives opinions, but cannot find a solution to internal communication problems. The results are clear to DTIP, who laments “the difficulty of carrying out co-construction with the McKinsey team and working hand in hand with the company.” 327,060 Euros in your pocket Not enough to question the juicy rewards of an American consulting firm.