Several Large Transnet Tenders Awarded Irregularly, CEO Tells Zondo Inquiry

Mohammed Mahomedy
A YouTube screengrab shows Transnet acting group chief executive Mohammed Mahomedy give testimony at the state capture inquiry on 15 May 2019.

The state capture commission of inquiry has heard how several large Transnet contracts were awarded without going through the required procurement processes and key people were never informed of the transactions.

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Acting group chief executive Mohammed Mahomedy made the claims during his testimony at the public hearings in Parktown.

Mahomedy said the locomotive maintenance deal with China South rail was irregular.

“It was a submission made to the full board of directors…. As far as we have reviewed, we have not seen any evidence of it surfacing at any management meeting.”

He also claimed the deals with Trillian and Regiments Capital bypassed procurement requirements.

“In fact, a number of executives at Transnet were completely ignorant that these transactions had occurred. Some of them would come to know through media reports and not the relevant committees they sat on.”

Mahomedy went on to say that in other instances, companies were paid without doing any work for Transnet.