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France’s financial prosecutor said on Wednesday it had opened a preliminary investigation into the role of private consultancy firms used by the state and into possible tax fraud, just days ahead of the first round of France’s presidential election.
The probe comes after a Senate inquiry committee revealed that state spending on consulting firms had skyrocketed during President Emmanuel Macron’s term in office.
The French president has been forced to defend his government’s liberal use of public money on the likes of US-based giant McKinsey, with political rivals sensing an opportunity to narrow his lead just 10 days ahead of the first round of presidential elections on April 10.
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In its report last month, the Senate investigation concluded that public spending on consultants had more than doubled from 2018-2021, reaching more than €1 billion ($1.1 billion) last year, a record.
The investigation, which condemned the “sprawling phenomenon”, also slammed McKinsey – which declared 329 million euros of sales in France over the last ten years – for failing to pay corporate taxes on that money, which McKinsey denies.
Although government use of private consultants is common elsewhere, the practice is viewed with suspicion in France, where an elite civil service is expected to manage public affairs.
While Macron is still the overwhelming favourite to win a new term, the critiques come as polls suggest the vote may be tighter than expected.
“You get the impression that there’s something murky, but that’s not true,” Macron said last week, challenging anyone with evidence of wrongdoing to report it to authorities.
He argued that public procurement policies had been strictly followed and additional help had been required during the Covid-19 pandemic, when ministries and civil servants were stretched thin.
Attention has focused in particular on McKinsey, whose eye-watering fees and tax policies have seen it join other US corporate bogeymen in France – from the BlackRock investment group to Goldman Sachs to genetically modified seed-maker Monsanto.
Some of Macron’s rivals have hinted at possible criminality while others have focused on what they see as irresponsible spending and overly cosy relations between the government and companies known for high prices and cut-throat business advice.
“With me, consulting groups will be gone,” hard-left candidate Jean-Luc Mélenchon promised last week, while far-right leader Marine Le Pen’s party has denounced a “state scandal”.
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Several candidates blasted the government for giving private consultants precedence over France’s highly trained civil servants, noting that their reach extended well beyond management of the Covid-19 pandemic.
McKinsey “received half a million euros to reflect on teachers’ jobs”, said Nathalie Arthaud, the candidate from the hard-left Lutte Ouvrière (Workers’ Struggle) party, herself a teacher.
“I reflect on my job every day when I face my students (…) but I don’t ask for half a million; I ask for a decent pay rise, like many workers.”
(FRANCE 24 with AFP, REUTERS)
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