State Capture Inquiry

A proposal was amended to favour China South Rail, Zondo commission told

After days of shocking evidence of corruption and maladministration by Transnet acting group chief executive Mohammed Mahomedy at the Zondo Commission of Inquiry into State Capture the week, the company's former strategy manager, Francis Callard, is testifying on Friday.

Mahomedy told the commission on Thursday of how an ill-advised interest rate swap on loans has cost Transnet more than R1bn.

Read: Transnet paid millions for jobs it could have done, acting CEO tells commission

To discuss Callard's testimony, Ray White on the Xolani Gwala Show speaks to EWN reporter Barry Bateman.

We are getting quite a typical explanation and introduction of how decisions were made when purchasing a locomotive to operate on South African railways.

Barry Bateman, Reporter - EWN

He says Callard took the commission back to about 2010, 2011 and 2012 when Transnet was looking at changing its strategy, which required it to address the demands of the industry.

There was a move in the industry where more companies who were using road freight wanted to move across to the rail freight but they simply didn't have enough capacity at the time.

Barry Bateman, Reporter - EWN

Callard was asked to put together a plan on how they would address this demand.

What it involved was taking 100 trains from coal freight which operated on the Ermelo coalfields down to Richards Bay. He rejected that memo.

Barry Bateman, Reporter - EWN

Months later Callard was asked to do another proposal but this time without him having any input and the proposal he had put forward was amended without his knowledge to fit the specifications for China South Rail.

Barry Bateman, Reporter - EWN

What we have heard so far is that a plan that would have benefited Transnet was sidelined in favour of China South Rail.

Barry Bateman, Reporter - EWN

Listen below to the full report:


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