Former Transnet CFO defends decision to appoint Regiments as transaction advisor

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Former Transnet Chief Financial Officer (CFO) Anoj Singh has defended the decision to appoint Regiments as transaction advisors in handling the China Development Bank funding.

Singh told the State Capture Inquiry that the Transnet treasury did not have the capacity to handle the transaction and was only able to handle the day-to-day activities related to funding.

He said it did not have the capacity to handle the R50 billion funding requirement needed to be done within specific time frames.

Singh told the Zondo Commission that Transnet did not have the capacity to handle a transaction of this magnitude and that the parastatal also had to satisfy the requirements of rating agency S&P.

He was responding to testimony by former Transnet treasurer Mathane Makgatho.

Evidence leader Anton Myburg read an affidavit by Makgatho, opposing the appointment of Regiments as lead negotiators. Makgatho said she was unhappy that Transnet’s biggest transaction was being negotiated by outsiders.

The evidence leader asked Singh to respond to allegations that Transnet awarded four different contracts to McKinsey over 4 days. The combined value of the transactions was R619 million and it should have been taken to the board but because they were separate contracts with different smaller values, this did not happen.

“I would assume that having it gone to Mr Molefe and myself. Distinctly different,” said Singh.

Singh will appear before the commission again to continue with his testimony on Monday.

Commission continues to hear Transnet-related evidence: Anoj Singh