Johannesburg - State-owned freight and rail transport company Transnet may have committed fraud when it paid Gupta-linked firm Regiments Capital R7.5 million when it was a supplier development partner of multinational investment bank JP Morgan.
Dr. Jonathan Bloom, who was contracted by Mncedisi Ndlovu and Sedumedi Attorneys to investigate malfeasance at Transnet, told the commission of inquiry into state capture that R7.5m paid to Regiments for arranging cross currency swaps on the R12 billion club loan borrowed from a consortium of lenders.
He said Regiments was not appointed to do cross currency swaps but JP Morgan was and that the company was unjustified and unwarranted to invoice Transnet for payment of R7.5m.According to Bloom, it was unclear why Regiments was paid R7.5m by Transnet when the company was JP Morgan’s supplier development partner.Bloom said the R12bn swap happened in two tranches, first the R4.5bn in December 2015 and the remaining R7.5bn in March 2016.
The commission has previously heard that JP Morgan was appointed to hedge the financial risks of Transnet’s purchase of 1 064 locomotives in April 2015.
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