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BusinessLive reports that Cosatu’s investment arm, Kopano Ke Matla, got a share from a fraudulent R657m windfall that Transnet paid to China North Rail (CNR) consortium to manufacture locomotives for the utility.
Kopano Ke Matla, Makana Investment Corporation and Linotando Investment each held a 20% stake at CNR Consortium, while Global Railway Africa and Cadiz Corporate Solutions each held 10%, Azon Rail 13.33% and 6.67% for Mmpumelelo Julius Nobande. Cadiz Corporate Solutions executive Roberto Gonsalves, testifying before the commission of inquiry into state capture on Thursday, explained how the consortium was paid millions in relocation costs, which it was not entitled to, by Transnet. The consortium had entered into an agreement with Transnet in March 2014 for the supply of 232 of the 465 diesel locomotives, at a contract price of R42m per locomotive. The total cost added up to R9.7bn. Transnet paid the consortium R657.18m in relocation costs, but Gonsalves confirmed that the consortium had absolutely nothing to relocate. When asked for a comment on Thursday, Cosatu general secretary Bheki Ntshalintshali said Kopano Ke Matla and the labour federation were two separate entities. “Kopano Ke Matla has its own board and a trust. We wouldn’t know its day to day operations or whether the consortium received the money illegally or not,” he stated.
- Read the full original of Luyolo Mkentane’s report on this story at BusinessLive
- Read too, Fired Transnet officials must explain disputed locomotives deal, Zondo inquiry hears, at BusinessLive
Get other news reports at the SA Labour News home page