The Department of Water and Sanitation and the Passenger Rail Agency of South Africa (Prasa) are set to hand over two contracts worth R70 billion to a Chinese parastatal according to media reports. In a report by The City Press on Sunday the newspaper claimed that two mega-contracts between government and a Chinese parastatal are set to go ahead, despite neither qualifying for deviation from procurement laws. The newspaper said it had obtained confidential documents that indicate that the DWS, together with Prasa and Treasury, have entered into funding negotiations with the Export-Import Bank of China (Exim Bank). According to the report the documents also appear to show that Exim will only provide the finance on condition that the construction on both projects is done by another Chinese parastatal, the China Communications Construction Company.
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