In a media statement Transnet states it has noted with concern the misleading and mischievous  reports over the weekend intended to cast aspersions on the integrity and vigour of the process the company followed in awarding contracts for the supply of 1064 electric and diesel locomotives.

Transnet wishes to confirm that it has absolute confidence in the open and competitive process it ran which resulted in the award of South Africa’s biggest infrastructure investment contract. The process complied with the highest standards of good governance which was overseen and signed off by a firm of independent internal auditors.

The process was supervised by the Board of Directors through a sub-committee – the Board Acquisitions and Disposals Committee which is made up of independent non-executive directors.

Transnet wishes to confirm that none of the local or empowerment partners of any of the bidders failed Transnet’s conflicts of interest test. Conflicts were discussed through our governance structures set up specifically for the contracts and it was decided that there was no conflict or potential influence

All the winning bidders met Transnet’s strict requirements, including technical ability; price; Broad Based Black Economic Empowerment; and localisation among others. The company also wishes to emphasise that the bids were open to all Original Equipment Manufacturers, regardless of geographic origin.

The following suppliers which are majority-owned by global Original Equipment Manufacturers were announced upon signature of agreements on Monday last week. (see attached statement)

• CNR Rolling Stock South Africa (Pty) Ltd and General Electric South Africa Technologies for the supply of 465 diesel locomotives respectively

• CSR Zhuzhou Electric Locomotive and Bombardier Transportation South Africa for the supply of 599 electric locomotives respectively

The delivery of the 95 electric locomotives we had ordered from CSR is on track and ahead of schedule. The first 10 is currently undergoing acceptance testing and indications are that the locomotives are of a very high technical standard.