Days of Zondo: The Transnet cowboys and the extraordinary push for that Gupta-linked China South Rail deal By Jessica Bezuidenhout JessBezJourn
A sound business case to buy 100 locomotives for use on Transnet’s coal line from a Japanese supplier was virtually buried.
Former Transnet strategy manager and engineer, Francis Callard, who had put together that initial business case for the acquisition of 100 locomotives in 2013, revealed the genesis of the deal during testimony. It recommended Mitsui for the deal to ensure compatibility with existing locomotives, noted the availability of facilities for immediate production and the fact that it was a known locomotive already in use by Transnet.
But the document would not make it to BADC. Callard, who had taken it upon himself to be on standby for the meeting in the event he was needed, instead received an SMS from Gama, the tone of which says much: “Please get out that boardroom. Thami is coming to talk about 1064. The 160 has been withdrawn so I am not sure why you are there.”Around January 2014 he received another SMS from Gama, this time to produce an updated business case for the acquisition of 100 locomotives and now also wagons.
He then discovered that his document had been significantly changed. Fundamentally, that Mitsui had been removed as the preferred supplier as the document now recommended that CSR be awarded the deal on confinement.The requirement that it be a 19E equivalent locomotive was removed throughout the document, it could now seemingly be just about any locomotive;
Callard said he was deeply concerned and wrote to Gama and Jiyane the following day, highlighting the flaws in the edited document.Gama later sent an SMS simply saying, he would explain the “thinking of the GCE to him.Callard said apart from the edits, the document was a mess, referring in some cases to General Electric when the author clearly meant CSR.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Mahomedy: Transnet's R300m penalty payment to China South Rail was avoidableActing group chief executive Mohammed Mahomedy has testified about an irregular contract with the Chinese company for hundreds of locomotives, which escalated from R38 billion to R49 billion.
Read more »
Documents 'deliberately' altered to award locomotive contract to China South Rail, Zondo inquiry hearsFormer Transnet executives had amended a business case to procure 100 locomotives so that it would favour China South Rail in tender processes, the state capture commission of inquiry heard.
Read more »
Locomotive procurement memo altered to favour China South Rail, Zondo hears | IOL NewsFrancis Callard took the stand and explained how he was tasked with drawing up the business case for Transnet’s procurement ...
Read more »
Brian Molefe picked 'unsuitable' China South Rail locomotives for contractThe commission of inquiry into state capture heard from previous witnesses how Gupta-linked companies received significant so-called success fees for sealing Transnet's deal with China South Rail.
Read more »
Transnet ‘went off track’ to sweeten Chinese dealTransnet jumped through hoops, broke the law and astronomically inflated prices just to secure a Chinese locomotive company a sweet R25bn deal – a transaction facilitated by the Guptas and their cronies at the state-owned entity.
Read more »
#StateCaptureInquiry: Mahomedy tackles locomotive costs, interest rate swaps | IOL NewsStateCaptureInquiry: Transnet acting group chief executive told the commission about three contracts with China South Rail that were entered into over various periods to supply locomotives to the state-owned freight operator.
Read more »
Transnet execs changed locomotive business case to favour Guptas'StateCaptureInquiry | 'I developed a business case for the 100 locomotives for the coal export line. It was unilaterally changed by Transnet group executives to favour CSR.'
Read more »
African swine fever to cut China pork output at least 10%, warns UNUN Food and Agriculture Organisation says production will fall about 10% in 2019 and create an opportunity for global pork producers
Read more »
Tense future for US-China ties, with or without trade dealThe United States faces a growing challenge to its lone superpower status from a Communist-ruled China whose global influence, military might and high-tech capabilities are rapidly rising.
Read more »
Business Maverick: Trump Warns China to Act on U.S. Trade Deal or Face Worse TermsPresident Donald Trump said it would be wise for China to “act now” to finish a trade deal with the U.S., warning that “far worse” terms would be on offer for them after what he predicted would be his certain re-election in 2020.
Read more »