Global consulting giant McKinsey & Co.’s work with both the Pentagon and Chinese state-owned enterprises poses a potential risk to national security that federal agencies can no longer ignore, lawmakers and critics say.
any conflict of interest, or appearance of a conflict, when bidding on a proposal, and to present a plan to address the conflict. It remains unclear if McKinsey has disclosed any potential conflicts of interest due to its work with Chinese firms, including in its contracts for the Defense Department.
For the 2015 contract between McKinsey and the Pentagon’s Defense Information Systems Agency , which runs the military’s computer network, the agency “was not aware of any conflict of interest or a possible appearance of a conflict of interest” concerning the contract, said Mary Constantino, spokesperson for DISA.
The senator asked McKinsey if it sought to avoid working with Chinese clients in areas of critical national security interest to the U.S., including telecommunications, the military and health care. “Most of the meeting consisted of generalities, platitudes and broad denials of wrongdoing or conflicts of interest. Every time a member of Sen. Rubio’s staff asked specific questions, McKinsey’s leadership repeated that they could not discuss their clients,” the congressional aide said.“There is no reason the U.S. Government should continue using McKinsey given the company’s inability to provide clear, direct answers about its work in China,” Rubio said in an email.
“If a federal contractor has ties to the [Chinese Communist Party] and its civ-mil fusion apparatus, the government should have tools to punish that behavior and rethink whether that company has the privilege of doing business with the U.S. government,” Rogers said. McKinsey is not the only consulting company doing business with the federal government and Chinese state-owned companies, and the emerging cold war between Beijing and Washington has created a dilemma for these firms, experts say.
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