The Johannesburg High Court has struck CRRC E-Loco Supply’s (CRRC) appeal off the roll, upholding a 2021 Special Tribunal preservation order freezing R4.1 billion in its bank accounts.
The ruling relates to Transnet’s R25bn locomotive tenders.
According to BusinessLIVE, this comes after Transnet and the Special Investigating Unit (SIU) alleged CRRC, a subsidiary of CRRC Zhuzhou Locomotive, had secured contracts for 554 locomotives between 2012 and 2014 through R1.4bn in kickbacks to Regiment Asia and Tequesta, companies linked to Salim Essa.
The contracts covered 95 locomotives for R2.7bn, 100 for R4.4bn, and 359 for R18bn. The frozen funds, pending a forfeiture application, are designated for return to Transnet.
CRRC filed its appeal papers in March 2023, arguing that the Special Tribunal lacked authority to issue preservation and forfeiture orders.
However, the company this week failed to appear in court after its legal team withdrew from the matter.
Advocate Mabasa Sibanda, representing Transnet and the SIU, on Wednesday asked the court to strike the matter from the roll.
“We are in a position where we set down this appeal and are pursuing the matter in the absence of the appellant. This puts the court on somewhat unusual terrain because it is not usual that an appellant is not in court or does not participate in their appeal,” Sibanda said.
He argued that it would be proper for the court to strike the matter from the roll with costs.
Judges Moleboheng Mdalana-Mayisela, Brad Wanless, and Sandisiwe Mfenyana ruled: “It is declared that the appeal has lapsed, the application for condonation for reinstatement of the appeal is refused, and the appeal is struck from the roll.”
They ordered CRCC to pay Transnet and SIU’s legal costs.
As a result of the failed deal, a total of 120 locomotives idled due to a lack of spare parts, affecting Transnet’s rail operations. The frozen R4.1bn relates to allegations of unlawful tenders. The forfeiture process continues.
