17 July 2017

South Africa: Amabhungane & Scorpio #GuptaLeaks - More Multinationals Ensnared in Transnet Kickback Web

analysis

As the #GuptaLeaks and other investigations publicly turn up more evidence, it has become clear that Transnet, with its annual revenue of more than R60-billion, was targeted as ground-zero for Gupta capture. By AMABHUNGANE and SCORPIO.

The #GuptaLeaks have revealed that two more companies that won Transnet tenders paid tens of millions to Gupta offshore fronts.

Bank and accounting records show that two heavy equipment manufacturers - Swiss-based Liebherr-International AG and China's Shanghai Zhenhua Heavy Industries Limited - funnelled nearly R100-million to the Guptas, as Transnet awarded them contracts to supply cranes to South African ports.

This brings to seven the number of large, mostly respected, companies known to have secretly paid Gupta fronts in connection with Transnet contracts.

A forgotten tip-off

Four years ago, an anonymous tipster told amaBhungane that Transnet crane suppliers were paying off the Guptas to get their contracts.

The tipster said: "The cranes that are being supplied to the ports from [Shanghai Zhenhua] are with Guptas. Ask Liebherr. While they were the preferred supplier, they were approached by Guptas to do a deal who then referred them to their local [black economic empowerment] partners, who in turn spoke to [then Public Enterprises Minister] Malusi Gigaba....

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