Former Eskom and Transnet CEO Brian Molefe helped inflate contracts by as much as R16 billion, which was split between four companies – including a Gupta-linked group – giving them billions in kickbacks, the City Press reports.
According to the paper, citing a report compiled by law firm Werksmans, Molefe lied to the Transnet board to inflate a tender for 1,064 locomotives.
The contract would have initially seen Transnet pay R38.6 billion, but withe reported help from Gupta-linked businessman, Anoj Singh, this was inflated to R54.5 billion, with a kickback of R10 million for every R50 million locomotive that was built.
Molefe and Singh are well-known Gupta partners, with both their names popping up in various investigations and reports into state capture, particularly around SOEs like Eskom.
Singh, who was the former CFO for Eskom, was suspended by the power utility in September 2017, after being placed on special leave at the end of July. This came following allegations that he was involved in irregularly awarding contracts to Gupta-linked businesses, and also received gifts and trips from the controversial family.
Molefe, meanwhile was more recently embroiled in a court battle to determine whether he had resigned or retired from his position as CEO of the power utility, and could keep the R30 million he was awarded as part of a confusing exit package.
Public enterprises minister, Pravin Gordhan, has called for the Hawks and the State Security Agency to investigate the Transnet contracts and to take action.
You can read the full report in the City Press for 13 May 2018.