Transnet Executive Manager for Governance, Peter Volmink, has told the State Capture Inquiry that the parastatal awarded McKinsey Consultancy eight contracts with a combined value of approximately R1.6 billion by deviating from the company’s normal open tender process.

He says this happened despite the fact that there were no grounds to pursue a closed tender as prescribed in Transnet’s Procurement policy.

Volmink told the commission in Johannesburg that deviations are only acceptable in an emergency or if there are no other suppliers of a particular service in the market.