Gupta-linked company Regiments Capital allegedly scored R227m for carrying out loan swaps on behalf of Transnet — a task the state-owned company’s treasury team was more than capable of doing itself. This is according to Transnet acting CEO Mohammed Mahomedy, who testified at the state capture inquiry on Thursday. Mahomedy said that by 2015, Transnet had entered into a number of loan transactions with various foreign financial institutions. The loans obtained from Germany, Canada and the Chinese Development Bank, amassed to more than R30bn. This excluded another loan, a “club loan”, for R12bn sought from five institutions. All the loan transactions were granted at floating rates. According to Mahomedy, in December 2015, then Transnet treasurer and state capture-implicated Phetolo Ramosebudi recommended that the floating interest rates on the club loan be converted to a fixed interest rate. This was despite members of his team warning against the move as it would incur a greater fin...

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