LIVE FEED: #StateCaptureInquiry May 16, 2019

Transnet Group Acting Chief Executive Officer Mohammed Mahomedy at the Zondo Commission. Picture: Karen Sandison/African News Agency(ANA)

Transnet Group Acting Chief Executive Officer Mohammed Mahomedy at the Zondo Commission. Picture: Karen Sandison/African News Agency(ANA)

Published May 16, 2019

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Johannesburg - Transnet acting Cheif executive officer Mohammed Mahomedy will continue his testimony at Zondo commission this morning.

On Wednesday, Mahomedy told the commission about various tender deals Transnet reviewed when new hoard took over. 

Mahomedy said they found irregularities regarding procurement practices in a number of contracts. 

The infamous China South Railway contract to supply over a thousand locomotives, contracts involving Gupta-linked Regiments Capital and Trillian Capital, the Neotel deal and the Durban relocation deal were just some of the contracts which were reviewed. 

Mahomedy said governance procedures were often ignored in awarded of contracts. Procurement regulations which govern how state-owned enterprises should procure services are required to be followed. 

In one instance, Mahomedy said with the China South Railway deal the submission for the procurement of the locomotives was sent to the minister of public enterprises and the board of directors. It did not follow the usual chain of approval through the management and board committees. 

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Mahomedy said contacts which involved Regiments and Trillian, companies which have been linked to Gupta associates, all bypassed processes. Trillian was paid over R16 million in one instance and the payment never went through processes.

The inquiry resumes at 10am. 

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