Transnet’s China bank loan probed
Emsie Ferreira
The department of public enterprises is looking into the terms of a Chinese Development Bank loan to Transnet to buy new locomotives, its acting director-general told MPs on Tuesday.
Thuto Shomang said the issue was whether there was any clause that allowed the Chinese bank to seize assets should the freight rail company default on the R1.5 billion loan.
“We will study the loan and revert back on that,” he said in reply to questions from the portfolio committee on public enterprises.
Officials from the department were briefing the committee on its first and second quarter performance plan report.
Opposition MPs have pressed the government to make public the terms of the R33 billion loan the Chinese extended to Eskom.
President Cyril Ramaphosa has previously given assurances to parliament that Eskom could not be taken over if it were to default on the loan, which it took to fund the construction of the Kusile power station.
The president said further details of the loan, which was signed in July and is repayable in 20 instalments over 10 years, could not be divulged because of confidentiality clauses.
The Transnet loan goes back further. It features allegations of machinations and that it was to the benefit of the Gutpa family and its business associates. It enabled Transnet to buy 1 064 Chinese locomotives and it has been reported that Regiments Capital, Transnet’s erstwhile Gupta-linked advisors, pocketed R122 million for facilitation fees.
Madipoane Mothapo Chairperson of portfolio committee on justice and correctional services