China North Rail minority shareholder, Roberto Gonsalves, says the Hawks have failed to take action against the reported improper payment of R674 million by Transnet to China North Rail (CNR), under the guidance of a dormant advisory company named BEX which was acting on behalf of CNR.

Gonsalves says the payment came as a result of the relocation of Transnet’s locomotives manufacturing plant from Pretoria to Durban.

He says they were paid a negotiated amount of R9.7 million, but costs were subsequently inflated to R647 million when BEX came into the picture.

He says BEX improperly received R67 million in commission payments from Transnet.

Gonsalves is responding to questions posed by Justice Raymond Zondo at the Commission of Inquiry into State Capture, in Parktown, Johannesburg.