How a local train builder lost billions as Transnet awarded massive tenders to Chinese company

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Newsletter| A report by the Broad-Based Black Economic Empowerment Commission has for the first time detailed how South Africa’s train-building industry lost billions of rands after Transnet awarded massive tenders to a Chinese company

The report deals with three tenders awarded to CRRC E-Loco Supply, including the infamous “1 064 locomotives” tender with saw Gupta-linked companies score R5 billion in kickbacks.

The commission has also asked Transnet to audit all contracts awarded to CRRC E-Loco, and all other companies, since 2014 to determine if they complied with the B-BBEE Act. “CRRC E-Loco Supply as a joint venture falls short of meeting the requirement of black ownership in that the critical components of ownership ... were severely restricted and economic interest did not accrue to MBC in line with its 30% shareholding, indicating a fronting practice, which is an offence under the B-BBEE Act.”C E-Loco, still known as China South Rail at the time,In October 2012, Transnet awarded it its first tender to supply 95 locomotives.

But MBC’s directors were excluded from key decision-making, financial management and procurement, and “denied involvement in the management decision of the joint venture”.

 

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Lucky where are you

The question we should ask is 'did the locomotive building companies have the capability to build modern locomotives and at what cost?

Black Monopoly Capital strikes again! 🙄😏🤨🤔🤷🏻‍♂️

Yet ANC is still in govt, no one was ever held accountable & there's no plan in sight to so.

So that s how the ANC led government empowers it's people by giving work to the Chinese , no doubt for some kickbacks

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