DAYS OF ZONDO: How to go from a price tag of R9.7m to R700m, Transnet-style

A Gupta-linked middleman company slipped into a Transnet deal and spiked the price of relocating a locomotive-manufacturing venue from Gauteng to Durban from a mere R9.7-million to about R700-million.

So disturbed was Gonsalves and a group of fellow South African minority partners in the locomotive deal, they went up against their international partners, China North Rail , formally brought the matter to the attention of former Transnet executives Anoj Singh and Siyabonga Gama and reported it to the Hawks in terms of the Prevention and Combating of Corrupt Activities Act.

The exorbitant spike in price first came to the local group’s attention after it was asked to sign off on the appointment of BEX at the request of its Chinese partners. While the consortium also preferred to manufacture in Gauteng, it appears the plan was to split manufacturing between the two cities across four groups contracted at the last minute to supply Transnet with 1,064 locomotives.

The costs related to measurable financial implications and covered costs including transportation, flights, accommodation and had factored in savings from importing equipment directly to the Durban port instead of having it moved to Gauteng thereafter. This gave CNR SA access to a payment of 50% of the claim within two weeks of Transnet signing off and the balance payable in 13 equal instalments thereafter.

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