South Africa: How to Go From a Price Tag of R9.7 Million to R700 Million, Transnet-Style


Business Expansion Structured Products, a Gupta-linked company which had then barely traded, inflated the price of relocating a yet-to-be-built locomotive manufacturing plant from Gauteng to Durban from R9.7m to R700m -- scoring about 10% of the deal for its efforts.

A Gupta-linked middleman company slipped into a Transnet deal and spiked the price of relocating a locomotive-manufacturing venue from Gauteng to Durban from a mere R9.7-million to about R700-million.

Business Expansion Structured Products, in short, BEX, a company then having barely traded, and which had seemingly hijacked the credentials of a different company, scored roughly 10% for its troubles.

This July 2018 article by amaBhungane is the blueprint against which South African businessman Roberto Gonsalves testified at the State Capture Commission on Thursday.

The Amabhungane investigation puts Gupta kingpin Salim Essa and a private company linked to former Transnet Board member Stan Shane at the genesis of BEX.

So disturbed was Gonsalves and a group of fellow South African minority partners in the locomotive deal, they went up against their international partners, China North Rail (CNR), formally brought the matter to the attention of former Transnet executives Anoj Singh and Siyabonga Gama and reported it to the Hawks in terms...

See What Everyone is Watching

More From: Daily Maverick

Don't Miss

AllAfrica publishes around 600 reports a day from more than 150 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.