Cosatu investment arm ‘benefited from Transnet’s tainted locomotives deal’

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Cosatu's investment wing benefited from a consortium awarded a Transnet contract to manufacture some of the 1,064 locomotives at the centre of state capture allegations

Cadiz Corporate Solutions executive Roberto Gonsalves tells state capture inquiry how the CNR Consortium was paid millions in relocation costsFreight transport: Transnet has planned a huge revamp of its rail logistics services countrywide. Picture: ISTOCK

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. Gonsalves told the commission, chaired by deputy chief justice Raymond Zondo, that their preference was to manufacture the locomotives at Pretoria’s industrial area of Koedoespoort.

“In my opinion, I don’t think we were entitled to the relocation costs. It’s not like there was this big crane that needed to be moved [to Durban],” he told Business Day on the sidelines of the commission. The consortium was paid an advance payment of R1.5bn, representing 15% of the total contract price as per the locomotives supply agreement.

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