Johannesburg – Transnet acting group chief executive Mohammed Mahomedy continued his testimony at the Zondo commission of inquiry into state capture on Thursday, further detailing how the state-owned entity was bleeding billions of rands as a result of irregular contracts and interest rate swaps.
Mahomedy told the commission about three contracts with China South Rail (CSR) that were entered into over various periods to supply locomotives to the state-owned freight operator.
He said that over a two-year period, the price for locomotives from CSR had risen from about R28 million per locomotive to R50 million per locomotive. There were “specification differences” between the locomotives, he said.
Mahomedy also testified that Transnet had and would continue to lose billions of rands because of interest rate swaps on loans it made to secure contracts that were set to run until 2030.
Additionally, authorisation for the interest rate swaps appeared to have been done without following procedure.