Former Transnet engineer details Gupta-linked tender at Zondo commission
Former Transnet engineer Francis Callard has told the commission of inquiry into state capture that Transnet irregularly changed a locomotive purchase plan he authored in order to benefit Gupta-linked company China South Rail (CSR).
The plan was to purchase 100 locomotives to transport coal between KwaZulu-Natal and Mpumalanga.
He said former Transnet CEO Brian Molefe dismissed his rejection of the CSR bid, a bid which he believed did not adhere to Treasury and procurement regulations.
"I looked at the amendments and I was taken aback and I said: ‘But this will not work because this is not right, its flawed in thinking and execution’. CSR had the capacity to produce 1000 locomotives a year. The relevance, however, is that the locomotives are produced in China and not South Africa and they would not meet any of the local supply development or content prescriptions for the import of locomotives."
Callard said the company had no history of producing any locomotives in South Africa and giving them the R3.8 billion deal constituted a risk.
ALSO READ: Ramaphosa appoints head of new Investigating Directorate
Despite him communicating his concerns with Transnet executives of Transnet, the deal was approved by the board. However, he said it's possible the board was misled.
Callard claimed Transnet's amended plan stipulated that CSR would be paid a 60% upfront fee payment.
"This is unusual, way out of line with anything we had done before that one pays 60% before one receives the locomotive. That meant that the upfront payment was R1.32 billion.”