Gupta-linked company Regiments Capital allegedly scored R227m for carrying out loan swaps on behalf of Transnet – a task the state-owned company's treasury team was more than capable of doing itself.
This according to Transnet's acting chief executive, Mohammed Mahomedy, who was testifying at the state capture inquiry on Thursday.
Mahomedy said that by 2015, Transnet had entered into a number of loan transactions with various foreign financial institutions. The loans, obtained from Germany, Canada and the Chinese Development bank, amassed to more than R30bn. This excluded another loan, a "club loan", for R12bn sought from five institutions.
All the loan transactions were granted at floating rates.