Guptas booked more than 120m of the Chinese loan to Transnet – The Citizen



The AmaBhungane Center for Investigative Journalism has revealed new evidence indicating that the Guptas have made about R122 million of a loan of R1.5 billion that the Chinese Development Bank (CDB) Transnet gave for the purchase of new locomotives.

Transnet has rejected the first offer of a loan of R2.5 billion from a CDB.

It is claimed that after financial support from CDB donors, including Regiments Capital, the financial advisors of Transnet, with links to the controversial family Gupta and after Phetolo Ramosebudi, a new treasurer in the vicinity of Regimental Capital, was appointed to the state-owned company. signed – albeit at a reduced rate.

At that time, those who took care of the interests of the Gupta stepped on and strolled on the deal with an amount of R122 million "success fees".

Whether or not CDB was aware of how the Gupta's benefited from the deal is unclear. According to Fin24, the bank refused to answer questions about state capture.

The R166 million "success fee" paid to regiments has reportedly landed on bank accounts owned by Sahara Computers, owned by Gupta, allegedly by false IT contracts for services never delivered.

READ MORE: Guptas paid billions in locomotive & # 39; toll & # 39 ;, asserts report

With the CDB loan, Transnet was able to buy 1064 Chinese locomotives in a deal that was generally considered controversial and allegedly meant kickbacks of China South Rail (CSR).

Minister Nhlanhla Nene van Financiën, who was then also in the position, apparently took the break.

After the initial loan had been rejected because it was too expensive, regiments Nene & # 39; urged CDB to reconsider the pricing of this strategic financing transaction & # 39; in the spirit of partnership and cooperation provided by the leaders of our Great Nations.

However, Nene replied that it was "absolutely necessary that we allow the consultative process and if at some point there is a need for a discussion between government and government, I am confident that such a discussion will be started".

This could have meant the end of the deal, but when treasurer Mathane Makgatho resigned at Transnet after more than ten years, said: "I have arrived here with integrity and I will leave intact with my integrity", her replacement Phetolo Ramosebudi, who is associated with regiments, quickly moved to reopen the negotiations that led to the signing of the deal.

The new evidence shows how the Guptas benefited from every phase of the Transnet procurement process, including CSR's controversial alleged kickbacks.

In addition to the regiments and the Guptas who have allegedly been looted by Transnet, there is the issue of the loan itself provided by CDB, which is reportedly massively expensive and which will take until 2030 to repay.

This has led some opposition politicians to question the willingness of President Cyril Ramaphosa to continue to accept Chinese loans. CDB recently offered to save Eskom for an amount of R2.5 billion.

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