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.
”It was fraud, unjustified and unwarranted,” Bloom said.
According to Bloom, it was unclear why Regiments was paid R7.5m by Transnet when the company was JP Morgan’s supplier development partner.