The controversy broke out at the wrong time for Emmanuel Macron, in the midst of a battle for his re-election. The publication of a senatorial report on the weight of consulting firms in the current mandate, Thursday, March 17, continues to agitate the opposition. The outgoing president was forced to justify himself on Sunday about the use of outside consultants in public decision-making. Bravado, the candidate advised “anyone who has evidence of manipulation” to go to court “criminally”.
The political impact of this affair is feared by the supporters of the Head of State, less than two weeks before the first round of the presidential election. The government takes this subject very seriously: Amélie de Montchalin and Olivier Dussopt, respectively Ministers of Transformation and Public Accounts, will hold a press conference on the subject, franceinfo learned on Wednesday, confirming information from Politico. This speech should take place on Thursday.
What is the McKinsey firm?
McKinsey, nicknamed “The Firm”, is an international consulting firm, just like Capgemini, Deloitte or KPMG. Present in 65 countries around the world, with approximately 30,000 employees, the American company is responsible for providing recommendations to private or public clients in order to carry out various missions, whether lucrative or not. This advice is provided by consultants.
What does the Senate report say?
According to a Senate report (PDF) made public on March 17, “the use of consultants is now a reflex” and these cabinets are “at the heart of public policy”. According to parliamentarians, the government is in a situation of real “addiction” to these firms: in 2021, the consulting expenses of Jean Castex’s government ministries reached 893.9 million euros, a marked increase compared to 2018 (379.1 million euros).
What were McKinsey’s missions?
According to the senatorial report, the government asked this firm both for the reform of the method of calculating APL (for a total amount of 3.88 million euros), at the start of the five-year term and in the context of the vaccination campaign against the Covid-19 (a contract at 12.33 million).
At the start of the year, McKinsey was also singled out for a contract of 496,800 euros invoiced to National Education in 2020. For this sum, the firm produced a 200-page document organized into various themes. in view of an international symposium, finally canceled due to the Covid-19 crisis.
Another McKinsey report had also been produced to prepare for the pension reform, which was postponed indefinitely. “We know that there is a PowerPoint and a small 50-page notebook. For a service at 950,000 euros, it’s expensive per page”was annoyed with franceinfo senator Eliane Assassi (PCF) at the time of the publication of the report.
What is the problem ?
This is the other highlight of the senators’ report. “The observation is clear: the McKinsey firm is indeed subject to corporate tax in France but its payments have been at zero euros for at least ten years, while its turnover on national territory has reached 329 million. euros in 2020, of which around 5% in the public sector, and that it employs around 600 people there”, explain the parliamentarians. The assembly would be “caricatural example of tax optimization”according to the senators.
How is McKinsey defending itself?
Faced with the outcry caused by the publication of this report, the firm McKinsey ensured respect “all applicable French tax and social rules” and said to have paid corporation tax “the years when the firm made a profit in France”. On Friday, March 25, the Senate announced that it had taken legal action for “suspicion of false testimony”, three months after a hearing where a manager of a French subsidiary of McKinsey had assured that the firm paid corporate tax in France. France.
How did the political class react?
In a presidential campaign marked by the Covid-19 and the war in Ukraine, this case gives grain to grind to the rivals of Emmanuel Macron. And candidates from all sides do not hesitate to personally implicate the outgoing president. For Valerie Pécresse, “Emmanuel Macron must explain himself on the massive recourse of the State to the company McKinsey”.
Emmanuel Macron must explain himself on the massive recourse of the State to the company McKinsey whose Senate reveals that it does not pay its taxes in France. How could he not know? The outgoing President must be accountable.
— Valerie Pécresse (@vpecresse) March 17, 2022
The environmental candidate, Yannick Jadot, meanwhile promised, during his meeting at the Zenith in Paris, on Sunday, to no longer use these firms. “who, with hundreds of millions of euros a year, have thought, on government orders, of the abolition of hospital beds, the reduction of APL and other brutal reforms”.
During his meeting in Marseille on the Prado beach, Jean-Luc Mélenchon was also virulent. For the candidate of La France insoumise, “enough private firms like McKinsey who give useless advice and do not pay taxes in France”.
“We can turn the page on the 5th Republic and the president who decides on his own. That’s enough private firms like #McKinsey who give useless advice and do not pay taxes in France.” @mbompard #McKinseyGate #MelenchonMarseille https://t.co/RteKVYmOT5 pic.twitter.com/La4riCPI7K
— Jean-Luc Melenchon (@JLMelenchon) March 27, 2022
What does Emmanuel Macron answer?
Faced with increasing attacks 10 days before the first round, Emmanuel Macron was forced to react. “Consulting firms must be called upon when it is for skills that are not found within the State”, declared Gabriel Attal on BFMTV in February. The Minister of Health Olivier Véran also assured during a recent hearing before the Senate that“At no time did McKinsey make me make a decision related to the health crisis or the vaccine campaign”. Finally, it was Bruno Le Maire, the Minister of the Economy, who recognized that it will be necessary “refocus activities if the use of consulting firms is excessive and the services go too far”.
In an attempt to put an end to the controversy, Emmanuel Macron, questioned in the program “Sunday in politics” on France 3, wanted to deny the accusations made against him. “We have the impression that there are tricks, but that’s not true. No contract has been signed in the Republic without respecting the rule of public contracts”, he explained. And the candidate adds: “Whoever has proof that there is manipulation bring the contract into question in criminal proceedings.”
️ “You have to be very clear: it’s wrong! If there is evidence of manipulation, let it go to the criminal court”
Guest of “Sunday in politics” on France 3, Emmanuel Macron returned to the controversy #McKinsey#DimPol pic.twitter.com/8dyCilc4eu
— franceinfo plus (@franceinfoplus) March 27, 2022
“I am not convinced that under this five-year term there have been fewer contracts than under certain others, including those who are attacking us today”also defended Emmanuel Macron in a slip, using the word “less” instead of “more”.
I didn’t have time to read everything, can you give me a summary?
In a report published on March 17, the Senate criticized the “addiction” from public authorities to consulting firms. According to the parliamentarians, for the year 2021 alone, the consulting expenditure of the ministries of the government of Jean Castex reached 893.9 million euros, an amount in sharp increase compared to 2018.
The senators also point the finger at two contracts very expensively invoiced to the State by the firm McKinsey and the tax optimization that the American company would practice.
Emmanuel Macron’s opponents denounce a “state scandal”. Less than two weeks before the first round, the outgoing president nevertheless assures “that no contract is signed in the Republic without respecting the rule of public procurement”.