Documents 'deliberately' altered to award locomotive contract to China South Rail, Zondo inquiry hears

Documents 'deliberately' altered to award locomotive contract to China South Rail, Zondo inquiry hears | @Fin24


Documents 'deliberately' altered to award locomotive contract to China South Rail, Zondo inquiry hears | Fin24

Former 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.

"I prepared a business case for 100 locomotives which was unilaterally changed by Transnet group executives and or the freight rail supply chain services to favour CSR (China South Rail)," he said.

According to Callard's testimony, a memo of the business case he originally drew up for Transnet to procure the locomotives was amended without his knowledge or any consultation with him or any of his technical colleagues. He said there was"deliberate misrepresentation" in the revised memo which he believes was authored by former Group Chief Procurement Officer Garry Pita.

"I was taken aback by these unilateral changes… I did not know what to make of these changes. I deliberated on it long and hard. I slept on it," he told the commission.

Commenting on what he learnt of the process, Callard said,"I am personally uncomfortable. Of everything I have read and seen of this, I am uncomfortable."

Read more: News24

Mahomedy: Transnet's R300m penalty payment to China South Rail was avoidable Acting 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.

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Transnet ‘went off track’ to sweeten Chinese deal Transnet 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. Somebody must be charged now. Hope the Hawks and the NPA are listening. I don't see anything wrong. China is our BRICS partner. As long as the west are not benefiting I'm happy.

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