French police on Tuesday investigated the Paris office of American consulting firm McKinsey & Co. on suspicion of a search and seizure, authorities and the company said.
of the Financial Supervisory Service office The consulting firm has launched a preliminary investigation following a March report from the French Senate claiming that the consulting firm has not paid corporate taxes in France in the past decade.
McKinsey denies any misconduct, saying he complies with French tax laws and is working with French authorities.
In a statement from the company, the company said, “We can confirm that the Parquet Sovereign Wealth Fund visited McKinsey’s Paris office on May 24.
“McKinsey, as always, is fully working with French public authorities. McKinsey reaffirms that the company complies with applicable French tax and social security rules.”
McKinsey said in an April statement that he was surprised by the public interest in the company, given that the company’s operations account for only 1% of government consulting spending.
McKinsey was brought under scrutiny in Washington for bankruptcy proceedings and consulting issues. opioid Working with manufacturers and state-owned enterprises in China and Russia.
While some lawmakers say the company’s performance suggests a possible conflict of interest, McKinsey denies any wrongdoing and says there are strict rules for avoiding conflicts.
Government contracts for private consultants, including McKinsey & Co., became an issue in the French presidential election in April. Opposition critics, both left and right, have accused President Emmanuel Macron’s administration of wasting taxpayers’ money on international consulting firms. Macron won the election.
A report by the French Senate showed that consulting firms had access to senior officials and often exercised invisible influence. According to the report, French government spending on consultants rose from 379 million euros ($455.7 million) in 2018 to 894 million euros in 2021.
McKinsey has been operating in France since 1964 and its Paris office is located on the famous Champs Elysees.
Gretchen Morgenson contribute.