Consulting firms, including McKinsey, were crushed by the Senate

Arnt Weekman via Reuters

This Senate report governs consulting firms, including McKinsey, regarding tax improvement fees

Politics – On Thursday, March 17, a Senate investigative committee accused McKinsey’s French companies of not paying corporate taxes between 2011 and 2020, a tax reform.

If the US company is isolated, the Senate said in that report, there is much broader concern about the rise of governments for these private companies. With two key questions: their cost and the impact of these private companies on public decision-making.

The event “will not begin under that five-year period,” senators acknowledge. However, this was increased significantly under President Emmanuel Macron, who was close to McKinsey’s cabinet before his election. The world. With constantly rising costs for the public coffers.

4 million euros for APL reform

“According to the ministries, the average cost per day for (a) consultant is 1528 euros, including taxes, for the period 2018-2020,” the senators noted. On average, this can be very high, sometimes exceeding 3000 euros per day.

McKinsey was fined $3.388 million for interfering in the reform of the Personalized Housing Allowance (APL) calculation system. 12.33 million euros for the vaccination campaign.

McKinsey is not an isolated case. CapGemini received 12 3.12 million to help build the barometer of public action results. The semaphores are responsible for 290,000 euros for helping the federal states with the distribution of the election campaign.

Total consultancy expenditures by ministries in 2021 amounted to 3 893.9 million compared to 9 379.1 million in 2018.

Spending on public funds isn’t the senators’ only fear. “Consultancy firms have been involved in most of the major reforms of the five-year period,” he said, adding that they were concerned about the impact they could have on public decision-making. In fact, the consultancies urge management to “have the habit of giving ‘priority’ to the proposed scenario,” which “enhances their weight in public decision-making.”

The Commission is also concerned about officials’ “bias” towards certain actors and calls for the “transfer of skills from consultancies to management” to be “more effective”.

What are the solutions?

In their nineteen final proposals, MEPs recommend publishing a list of services provided by the government and its operators in open data. They advocate a formal review of over £150,000 worth of consulting services and a ban on free services for civil servants. Another track: the systematic destruction of data given to companies at the end of their work.

Finally, senators rely on the High Authority for transparency in public life, and they want to increase their resources to allow cabinets to monitor compliance with their ethical obligations. “The health crisis underscores the involvement of consultants in the implementation of public policy. That’s just the tip of the iceberg,” the investigative commission said.

Prime Minister Jean Costex wrote a circular in mid-January that regulates the use of “intellectual services”. But there is a lack of “commitment”, emphasize senators, and the goal of reducing consulting costs by 15 percent by 2022 is “unrealistic”.

A month later, under pressure from the senators’ investigation and the publication of the book Infiltrate (Ed. Allary) Building on the power of the World of Advisors, the Government announced the creation of a state-of-the-art State Advisory Board, headed by Amelie de Montzal, for Ministerial Transformation and Civil Service. .

However, government spokesman Gabriel Attle speculated about the close ties between the government and these private companies: he said so in February.

See also The Hoppost: There are 4 things to check to avoid getting caught up in the presidential election

Leave a Comment