Days of Zondo: The Transnet cowboys and the extraordinary push for that Gupta-linked China South Rail deal

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 The 160 has been withdrawn so I am not sure why you are there.”Around January 2014 he received another SMS from Gama, this time to produce an updated business case for the acquisition of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.

JessBezJourn Thank you for the informative article. It is unbelievable that arrests have not been made despite all the evidence to hand!

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