Werksmans report shows Transnet wasted billions in locomotives deal
Transnet squandered billions of rand and broke a raft of regulations when it altered the terms of a deal to buy 1,064 new locomotives, a investigation by law firm Werksmans Attorneys has found. The state-owned port and freight-rail operator commissioned the probe in July 2017 after allegations surfaced that massive kickbacks were paid on the deal. The accusations were contained in a trove of more than one-million electronic documents and were published by local investigative journalists. Its board — which has since been replaced — said Werksmans did not uncover wrongdoing by any of its officials, an assertion the law firm disputed. A copy of the Werksmans’ report dated December 7 was seen by Bloomberg. It states that Transnet’s board agreed in 2014 to pay a total of R38.6bn for the locomotives from China South Rail, China North Rail, General Electric and Bombadier, but the bill rose to R54.5bn after the seven-year delivery period was accelerated. Werksmans said it was not provided w...
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