Former Transnet Electrical Engineer, Francis Callard has told the State Capture Inquiry that McKinsey’s final business case for the costs associated with the purchase of 1064 locomotives was deliberately misleading.

He says McKinsey’s final business case did not state the possible costs in escalated foreign exchange costs, borrowing costs and other costs.

Transnet’s 1064 locomotive purchase was approved for R38 billion but costs subsequently escalated to R54 billion, leaving Transnet in a dire financial position.

Callard says the approving authority were misled in the real cost of the acquisition and therefore did not have all the facts to make a decision on the matter.