Transnet ‘just conduit’ of funds for Zimbabwean rail revamp
Eyebrows have been raised over the likelihood that Transnet would finance the $400m (R5.3bn) tender
A consortium of Zimbabwean businesspeople in SA is financing the recapitalisation of the defunct National Railways of Zimbabwe (NRZ), say people close to the multimillion-dollar deal, and Transnet is merely a "conduit" in the transaction. Eyebrows have been raised over the likelihood that Transnet would finance the $400m (R5.3bn) tender given the poor state of its books and the likely turmoil that will result from its being implicated in the Gupta e-mail leaks. Sources close to the deal said that Transnet was roped in for its scale and technical expertise, while the Diaspora Infrastructure Development Group (DIDG) sourced the financing for the recapitalisation from abroad. "They [DIDG] raised the financing from their sources abroad, but could not bring the money directly to Zimbabwe because of sanctions and the associated high risk of investing in Zimbabwe. "So Transnet is the conduit they are using in this transaction," said a source in Harare close to the deal. "Transnet does not...
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