State capture: Transnet agreements 'went straight to the board for approval, bypassing managers'

"Certain transactions were approved through normal processes and some of the transactions did not go through the governance processes prescribed within Transnet. If we look at the Neotel transaction, there was an approved memorandum to appoint Neotel in October 2013," he said.

"In November, a memorandum was signed by [then CEO Brian Molefe] nullifying the decision of the people who approved the [previous] contract and replacing Neotel with P-Systems. Then in December, another memorandum approved the appointment of Neotel."Neotel scored a R4.9bn contract from Transnet to upgrade CCTV systems at the country’s ports without a competitive bidding process being finalised.

"If we look at the maintenance agreement with China South Rail ... As far as we have reviewed, we have not seen any evidence of it surfacing at any management committee meeting. It was presented directly to the board of directors and then subsequently delivered to the minister's office for approval," Mahomedy said.

The Chinese company allegedly paid about R5bn in kickbacks to companies linked to the Gupta family and in return scored about R25bn in locomotive contracts irregularly signed-off by Transnet.

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