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Economics & Trade

McKinsey employees face probe over graft

Management consultancy firm McKinsey & Company confirmed yesterday that two employees of its Shanghai office in charge of logistics support are under investigation by police on suspicion of accepting bribes, the South China Morning Post reported. The confirmation comes after the Ministry of Public Security said Tuesday it had cracked nearly 1,000 cases of commercial corruption in the first 11 months of 2006, up 54% from the same period in 2005, and arrested 781 people. The ministry cited 10 cases as examples, including one uncovered by Shanghai police in May last year, which involved bribes worth 1.3 million yuan to employees of "several companies", including McKinsey, to win contracts for projects. Business analysts told the newspaper taking or giving bribes is a common practice when doing business on the mainland, but it is rare for employees of a foreign company to be publicly implicated.

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