JOHANNESBURG - Officials at state logistics company Transnet went out of their way to assist China South Rail (CSR) in its bid to be appointed for the supply of 95 locomotives, a report published by the National Treasury on Friday shows.
The report by Fundudzi Forensic Services, which was contracted by the National Treasury to probe graft at state firms, says former cabinet minister Malusi Gigaba, who was then public enterprises minister, compromised the procurement process by signing the locomotive supply agreement between Transnet and CSR as a witness.
Transnet and CSR entered into the agreement on October 22, 2012 relating to the design, manufacture, testing and supply of up to 95 new locomotives, the report says.
Transnet would have saved R1.2 billion if it procured 100 locomotives from Japan's Mitsui at R3.188 billion than procuring from CSR at R4.4 billion, it says.
The Transnet board failed to notify the shareholder, being the government, of acquisitions and disposal above R2 billion before the conclusion of the contract with CSR as required by 2013-2014 shareholders compact agreement.
More bad news for Malusi Gigaba. This Treasury report implicates him in flawed procurement processes for Transnet locomotives, etc. Have a look ---> https://t.co/yfVwPzvqNm
— Eusebius McKaiser (@Eusebius) November 16, 2018
Did u or did u not lobbied for Gama to be appointed as Transnet CEO?
— Fusie Lehasa (@FusieLehasa) November 12, 2018
Melusi Gigaba has a Hand ìn the dubious Transnet/Chinese 1064 locomotives contract of which Guptas benefited. He signed the LSA between Transnet and CSR as a witness thus compromising the procurement process. pic.twitter.com/hlTbNyUwjk
— Abuti Josef🇿🇦 (@AbutiJosef) November 16, 2018