Johannesburg - The Zondo commission has heard that a company contracted to supply Transnet with locomotives was paid an R5,4 billion deposit even before they had delivered on the service.
Acting Transnet acting chief executive officer Mohammed Mahomedy appeared at the inquiry on Wednesday and told the commission that the relationship between certain Transnet officials and China South Rail (CSR), a Chinese company, was suspicious.
He detailed a series of behaviour which signalled an unusual relationship between a supplier and a bidder.
Mahomedy said CSR was contracted to supply Transnet with locomotives and as part of the protocol, suppliers would be paid a 10% deposit, this was standard with all contracts.
However, when CSR was awarded a tender Mahomedy said red-flags were raised when he heard that the negotiating team was considering paying a higher deposit fee.