‘Major litigation’ on Transnet locomotive contracts in the offing says Popo Molefe
Transnet chair Popo Molefe vows to take action on ‘unlawful and irregular’ deals worth R54.5bn, allegedly involving kickbacks and Gupta-linked corruption
Transnet’s contracts to acquire 1,064 locomotives were “unlawful and irregular” from the beginning and action has to be taken about this violation of the law, chair of the state-owned freight, rail and logistics group Popo Molefe insisted in parliament on Tuesday. He told parliament’s trade and industry committee that this conclusion was based on investigations which are continuing. “Major litigation” was anticipated, he said. Molefe said Transnet would be ready by February next year to give a substantive report on action to be taken and what would be a “just and equitable remedy” which would address the de-facto situation as well as the imperatives of Transnet’s business. The company did need locomotives though possibly not the number contracted. The Transnet board has taken action against the malfeasance in the parastatal, dismissing former CEO Siyabonga Gama, suspending senior executives and issuing summons to recover money lost. Transnet signed four contracts worth R54.5bn for t...
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