Guptas reportedly earned billions from Transnet deal | Infrastructure news

Members of the highly publicised Gupta family have been accused of getting billions of rands in deals that helped a Chinese company win Transnet locomotive tenders.

The information was uncovered by the amaBhungane Centre for Investigative Journalism and the Daily Maverick at the end of last week after emails were leaked.

The Chinese firm involved, China South Rail (CSR Hong Kong) Co Ltd, won a tender to supply 359 locomotives to Transnet in 2014.

CSR reportedly contracted Tequesta Group Ltd, a Gupta owned company, as a consultant. According to both media outlets, the agreement stated that Tequesta would earn a 21% cut of every deal gained by CSR. This equated to approximately R5.3 billion since 2014.

The breaking story also highlighted how the appointment of then public enterprises minister Malusi Gigaba, in 2010, allegedly helped spread the influence of the Gupta family at Transnet.

Gigaba later moved to home affairs and more recently was appointed as finance minister. After leaving Transnet he appointed Iqbal Sharma‚ who is reportedly close to the Guptas‚ to the Transnet board. There he oversaw procurement.

The article also said Gigaba appointed Brian Molefe as Transnet chief executive in 2011 before his role as group CEO at Eskom, followed by his short parliamentary stint. Molefe was last year implicated in allegations of state capture and also surrounded the Guptas.

The Sunday Times reported last week that the leaked emails also showed how a former Gigaba adviser did favours for the Guptas while at home affairs‚ although he denied these allegations.

This is a developing story.

  • amaBhungane and Daily Maverick said they had not at the time contacted any of the parties for comment‚ citing a provision in the South African Press Code that allows journalists to do so.

Additional Reading?

Request Free Copy