Opposition political parties, the Democratic Alliance (DA) and Economic Freedom Fighters (EFF), have welcomed news that independent law firm, Werksmans Attorneys, has been appointed to oversee a probe into corruption allegations around Transnet Freight Rail’s (TFR) purchase of locomotives from China South Rail (CSR).
Last month the EFF laid criminal charges over “alleged corruption” at Transnet during the procurement of over 1000 new locomotives from CSR, while the DA Shadow Minister of Public Enterprises, Natasha Mazzone, said this week that the ongoing levels of corruption unearthed at Transnet “raised further questions around the parastatal’s vulnerability to corruption”.
Earlier this week Transnet group CE Siyabonga Gama told journalists that the Transnet board of directors had ordered an investigation which would review, amongst others, whether the state-owned entity was overcharged for locomotives and whether it followed its own procedures.
The amaBhungane Centre for Investigative Journalism and Scorpio, the Daily Maverick news website’s investigative unit, reported last month that the Gupta family – who are friends of President Jacob Zuma and in business with his son – entered into kickback agreements worth R5.3 billion with a unit of CSR.
Gama was adamant that no wrongdoing would be uncovered, reiterating an earlier TFR statement that it was confident that all procurement processes “have sufficient checks and balances to guarantee integrity”. He added however that the group would “take swift action” should there be any evidence of corruption.
The Werksmans audit is expected to take three months to complete.
