Gupta-linked company's Transnet links

An SA group of investigative
journalists has hit out at
what is termed a “dubious”
relationship between an
advisory group and the
transport parastatal,
Transnet.
But the advisory group
effectively pleaded not
guilty in its response sent
to FTW.
The issue was raised by
the amaBhungane (Zulu for
‘dung beetles’) Centre for
Investigative Journalism
and carried on its web site.
In this, it reported that
the Gupta-linked Trillian
“is sucking cash out of
Transnet at a furious rate”
even while the treasury is
reportedly sniffing away
at the deals between these
bed-fellows.
AmaBhungane said that
it had obtained copies of
Trillian invoices totalling
R74 million – signed off for
payment by Transnet chief
financial officer Garry Pita
at the end of June.
“This,” it added, “came
on top of R93m paid out
late last year without a
competitive bid, bringing
the total to R167m.”
It then wrote that the
payments underscored
“how big the stakes are” in
the battle over state-owned
enterprises raging between
finance minister Pravin
Gordhan and president
Jacob Zuma.
AmaBhungane then
pointed out that Trillian
Capital Partners, the apex
operational company in
the Trillian group and only
established late last year,
was held 60% by Trillian
Holdings. “Its sole director
is close Gupta associate
Salim Essa,” the report
revealed, “but its ownership
is a ‘black box’.”
After AmaBhungane had
been trying for months to
access Trillian Holdings’
share register – a legal
right under the Companies
Act – it finally resorted to
having a summons served
at Essa’s home and business
addresses to force him to
comply with the law.
“Essa’s shared interests
with the Gupta family
include VR Laser, a steelcutting
business that has
formed a controversial joint
venture with state arms
company Denel to market
weapons across Asia,” the
report said.
According to
AmaBhungane, the Sunday
Times reported in May
that the national treasury
was investigating Transnet
contracts with Trillian
and another advisory firm,
Regiments Capital.
It was also noted that
former Regiments director
Eric Wood had left last year
to become CE at Trillian
Capital Partners, with
AmaBhungane saying it
“understands that Woods’
departure was in part
due to other directors’
unhappiness about his
relationship with the
Guptas”.
On top of that, the
investigative team
also learned that the
Transnet transactions
formed part of the Public
Protector’s investigation
into allegations of “state
capture” that are focused on
the alleged inf luence of the
Gupta family.
Added to this,
AmaBhungane also
reported an extensive list
of other allegations against
the Trillian group – all
confirmed by evidence
from invoices – which it
said were “remarkably
skimpy on detail” – and
supported by statements
from Transnet and advice
from independent business
analysts.
But all these allegations
were denied by Trillian.
And, in response to a query
put before it by FTW, we
were thanked “for getting
in touch with the company
and affording them the
opportunity to respond”.
But the reply was purely a
repeat of a statement from
Trillian’s PR agency – the
same as had already been
released to AmaBhungane.
It said: “Trillian Capital
Partners is confident that
all due processes were
followed and that we
delivered high quality work
and value to the client.
“We are not aware of any
investigation and have never
been notified of any such
investigation. We continue
to conduct our business
with the highest levels of
corporate governance and
service delivery.
“If you have any concrete
proof of any wrongdoing,
please provide it to our
board of directors and
we shall address it
immediately.”