Several companies were unlawfully contracted to Transnet, Zondo Commission told

The Zondo Commission has heard how several contracts were irregularly awarded and amended which lead to significant costs incurred by Transnet.

This was among the submissions made by MNS Attorneys’ Tshiamo Sedumedi, whose firm investigated several multibillion-rand contracts.

He described how the company incurred price penalties in one questionable locomotive deal and deviated from the contracted agreement.

Costs for the procurement escalated from R38bn to R49bn.

Eyewitness News reporter Barry Bateman has more on the story.

It was quite remarkable how certain terms were agreed to at certain stages, once contracts were rewarded the terms were simply changed.

Barry Bateman, Reporter - EWN

It was included in the negotiation process that if there was any deviation from the contract at a later stage, it was stipulated that Transnet will not incur any penalties should the contract split. However, when the job was split between other companies, the cost escalated.

Barry Bateman, Reporter - EWN

Click on the link below to hear the full report....


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