Transnet will be suing its axed CEO Siyabonga Gama for R166m, which the utility says was an overpayment made to Gupta-linked Regiments Capital. This relates to a consulting contract awarded to Regiments as part of Transnet’s purchase of R54bn of 1,064 locomotives, which has been the subject of various investigations. International consulting firm McKinsey, which came under fire for the work it did for Eskom with another Gupta-linked firm, Trillian Capital Partners, was also contracted to do work on the locomotives purchase. Gama’s axing came after these investigations found that he, former CEO Brian Molefe and Gupta associates may have acted unlawfully in relation to the purchase of the locomotives. The claim of R166m came to light in an affidavit filed by Transnet board chairman Popo Molefe, on behalf of himself and his fellow directors, in response to Gama’s application in the labour court asking for the termination of his contract to be overturned.

The embattled CEO also wa...

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