Sinton exposes Transnet ‘scheme’
STANDARD Bank’s former general counsel Ian Sinton yesterday blew the lid on how Gupta associates doled out millions of rand paid by troubled state-owned freight and rail transport company Transnet.
Sinton told the Zondo Commission of Inquiry into State Capture that, in 2014, millions were paid by Transnet to Regiments Capital, which described itself as an integrated investment banking and advisory firm.
According to Sinton, Regiments Capital received payments of about R210 million, which was shared between its directors, Gupta associate Salim Essa and businessman Kuben Moodley.
Essa initially nominated Chivita Trading to receive the money, but later put forward letterbox company Homix. Chivita was paid more than R80m in a few months in 2014, while Homix received about R95m from Regiments Capital.
Over two days in April 2014, R40m was paid to Chivita and another R5m the following month. In July that year, Chivita received more than R23m from Regiments Capital while Homix received R16.5m in November, among the large payments.
Sinton said Regiments Capital directors Niven Pillay and Litha Nyhonyha would each take large amounts – R2m at a time.
Regiments Capital was brought into the Transnet deal by global management consulting firm McKinsey, as its supplier development partner.
In terms of the deal, McKinsey would pay 30% of its fees to Regiments Capital, which then paid 30% of its share to Essa, whose share was raised to 50%. Regiments Capital would also pay Moodley 5% of its share.
The funds transferred to Homix’s bank account ended up in Bapu Trading’s, and this suggested there was money laundering
Sinton said he did ask Nyhonyha and Regiments Capital chief operations officer John Rossouw how the company would pay out 30% of its revenue and still be sustainable.
He told the commission that he was told by Regiments Capital that Essa was responsible for the company getting work at Transnet.
“He was handsomely rewarded,” he said of Essa.
Sinton said Regiments Capital paid exorbitant fees and he found their explanations implausible, so the banking giant terminated its relationship with the company.
Evidence leader Vincent Maleka described the arrangement as a “scheme”.
Sinton said the funds transferred to Homix’s bank account ended up in Bapu Trading’s, and this suggested there was money laundering.
His evidence implicates 19 parties, but only McKinsey and Regiments Capital responded.
Regiments Capital asked the commission to postpone Sinton’s evidence by 30 days, but this request was rejected as there was no basis for it.