Scopa calls for look at Transnet contracts

Signs of state capture alleged

TRANSNET could face an inquiry into state capture after members of the standing committee on public accounts (Scopa) revealed their unhappiness about some contracts the freight-rail logistics company had issued.

ANC MP Nyami Booi said Transnet needed to get to the bottom of some contracts, particularly those signed with the politically connected Gupta family, a charge that was supported by opposition parties, including the DA and IFP.

The portfolio committee is investigating Eskom.

Booi said there were dubious contracts between Transnet and some of the companies. One of these was with the Chinese company involved in the locomotives contract.

“Can’t we investigate Transnet. The House chairperson (Cedric Frolick) has written to all the committees that if they come across serious allegations (of corruption) they must take decisions,” Booi said. “Can’t Scopa take this matter and investigate?”

Booi also accused Transnet executives and the board of being Gupta appointees.

Transnet chief executive Siyabonga Gama said there were internal forensic investigations into the allegations in the company.

Gama said Transnet would return to Scopa with the findings and action taken.

He said they had reported some of the cases to the police.

Among the allegations in the media are that SAP paid R100 million to a Gupta-linked company.

It was also reported that a Gupta company received kickbacks of R5.3 billion for securing the locomotives tender for the Chinese company. This was for a tender of R25bn.

Gama told Scopa the investigations were at various stages.

He said that for each media report they had reported the cases to the police. Confident “We have had members of the SIU (Special Investigating Unit) visiting our offices. We are quite confident the authorities will investigate this. On the 1 064 (locomotives contract), I am aware that the SIU has been to my office to discuss some of the issues,” said Gama.

Scopa chairperson Themba Godi said the committee would reconvene next Wednesday to make a final decision on the inquiry.

Godi also asked Hawks acting head Lieutenant-General Yolisa Matakata to report back on progress made in their investigations when the standing committee reconvenes next week.