National Treasury receives report on corruption in Eskom and Transnet

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National Treasury has announced that they have  received the final report into investigation of various allegations at Eskom and Transnet. The report is divided into three parts. Part one reflects the procurement of locomotives by Transnet while part two reflects the procurement of consultancy services from McKinsey, Regiments and Trillian. Part three reflects the procurement of coal from Tegeta and other related matters.

The report includes highlights like:

  • Transnet officials who went out of their way to assist China South Rail (CSR) in their bid to be appointed for for the supply of 95 locomotives.
  • CSR  was irregularly appointed in that it should have been disqualified for receiving bid documents unlawfully, communicating with Molefe failing B-BBEE requirement and not submitting all returnable documents.
  • CSR compromised the integrity of the procurement processes by communicating with Molefe during the bidding process; and Molefe’s communication with Pan (CSR) was sent to individuals who have links with the Guptas and companies associated with the Gupta family.
  • Former Public Enterprises Minister, Malusi Gigaba and the Transnet board were also found to have acted illegally in the procurement approval. “Minister Gigaba compromised the procurement process by signing the  LSA between Transnet and CSR as a witness”
  • Certain key legislation was ignored, permitting wrong-doing and bad financial decisions taking place.

Read Report: 

Final Report Procurement of Locomotives (Text)