Brian Molefe and Anoj Singh signed off on an irregular rail deal on New Year’s eve that resulted in two train makers scoring contracts that were allegedly inflated by R11bn. This emerged from an explosive draft report that was commissioned by the Treasury into an alleged looting spree at Transnet and Eskom by the Guptas and their associates. The interim report, by Fundudzi Forensic Services, pointed to several anomalies in procurement processes followed when Bombardier and China South Rail (CSR) were awarded the contracts. Bombardier was contracted to supply 240 electric locomotives for R13bn and CSR 359 locomotives for R18bn, bringing the total price tag to R31bn. Bombardier initially stood to earn only R8bn and CSR R12bn, or R20bn in total. Bombardier has said the price differential could be explained by the fact the firm initially put in a bid for 599 locomotives at a lower cost per unit. The draft report for the Treasury flagged several irregularities with the deal. Final offers...
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