South Africa: Transnet Says It Is Close to Clawing Back Looted Funds


Transnet, the state-owned freight and logistics company, says talks with the original equipment manufacturers who benefited from multibillion-rand irregular contracts are at a sensitive stage and there will soon be a breakthrough.

Transnet has been exchanging information and demands with the manufacturers of the 1,064 locomotives it acquired at a cost of more than R54-billion a few years ago, with a view to setting aside some of the contracts, said acting chief executive Mahommed Mahomedy on Monday 11 November 2019.

"In the next few months there will either be an agreement with some of them, or we will lodge papers in court to set aside the contracts," said Mahomedy, speaking on the sidelines of the interim results presentation. He did not name the suppliers with whom talks are at advanced stages.

"The board has given its approval on certain matters. If they (the equipment manufacturers) agree with our assessment, we will then reach an agreement and approach the courts jointly, or we will go it alone to try and have the contracts set aside."

In order to cancel corrupt contracts, according to South African law, state-owned companies must approach the courts to review and set aside contracts irregularly entered into....

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