BCG admits to paying bribes for Angolan government contracts

Boston Consulting Group (BCG) admitted to paying millions of dollars in bribes to secure consulting contracts with the Angolan government.

The US Department of Justice (DOJ) on Wednesday made public its investigation of BCG. The Boston-headquartered consulting firm has agreed to forfeit $14 million in profits from the Angolan contracts.

Between 2011 and 2017, BCG’s Lisbon, Portugal office sent money to the offshore accounts of middlemen connected to Angolan officials and members of the ruling political party. The payments amounted to between 20% and 35% of the value of the awarded contracts, the DOJ said.

The bribery period arrived at the end of the tenure of deceased president José Eduardo dos Santos, who ruled the African country from 1979 to 2017. Dos Santos has drawn criticism for being a dictator, as well as for creating one of the most corrupt government regimes in Africa.

Between 2011 and 2017, BCG won 11 contracts with Angola’s ministry of economy and one contract with the National Bank of Angola, for a total value of $22.5 million.

Although the DOJ said BCG’s actions breached the US Foreign Corrupt Practices Act, it opted not to prosecute the consulting firm because BCG reported the matter itself, co-operated with the investigation, and fired the individuals involved.

BCG has also since closed its office in Luanda, Angola.