Allegations of irregular transactions with Gupta companies emerge at Commission

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Transnet Electrical Engineer, Francis Callard, will assume the hot seat at the State Capture Commission in Parktown, Johannesburg, when it resumes on Friday.

The parastatal’s Acting Group CEO Mohammed Mahomedy wrapped his testimony on Thursday. He testified about alleged irregular transactions entered into by former executives with Gupta-linked companies, Regiments Capital and Trillian.

Mahomedy said Transnet’s former Treasurer, Phetholo Ramosebudi, prepared a document requesting then acting Chief Financial Officer, Gary Pita, to approve interest rate swaps for bank loans, which would ultimately see Transnet unjustifiably paying R3.2-billion in interest repayments.

He alleges that Pita and Ramosebudi ignored the advise of then Transnet deputy Treasurer, Danny Smith, who had cautioned him against the interest rate swap.

Mahomedy says Regiments and Trillian Capital were paid more than R220 million and R93 million respectively in upfront commission fees for loans obtained by Transnet from a consortium of banks. He says this was done without a formal contract.