Report reveals how Transnet wasted billions in locomotives deal - Bloomberg

An investigation by law firm Werksmans Attorneys has found that Transnet wasted billions of rands and broke a number of regulations after changing the terms of a deal to buy 1,064 new locomotives.

The investigation was commissioned July last year after allegations surfaced in the Gupta Leaks, that massive kickbacks were paid on the deal.

A copy of the Werksmans’ report is Bloomberg's possession.

According to the publication Transnet’s board had agreed in 2014 to pay a total of R 38.6 billion for the locomotives from four companies - China South Rail, China North Rail, General Electric Co. and Bombadier Inc., but the bill rose to 54.5 billion rand after they accelerated the seven-year delivery period.

The report has apparently identified "serious breaches of statutes, regulations, corporate governance and unlawful conduct in relation to the transaction – involving billions of rand”.

Karima Brown spoke to investigative Journalist at Bloomberg Mike Cohen to find out more.

What Werksman is saying is that it could not find any evidence that either the National Treasury or that the Department of Public Works had approved either the increased payment or the changes in the terms of this deal.

Mike Cohen, Investigative Journalist at Bloomberg

Transnet actually responded to this Werksmans report in February and they issued a statement saying there were no concrete grounds providing for the suspension of any officials and they actually want another investigation to fill in the gaps that were left unanswered bt Werksmans.

Mike Cohen, Investigative Journalist at Bloomberg

Click on the link below to hear more from Cohen....


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