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Transnet decided to spend R54 billion on the acquisition of 1064 locomotives in 2014.
Photo by Gallo Images / Foto24 / Deaan Vivier
- The cost of 100 locomotives in a controversial deal at Transnet soared from an initial R3.8 billion to R4.4 billion.
- Transnet executive Yousuf Laher told the state’s capture investigation that he questioned former chief financial officer Anoj Singh about the price, but fear of being insubordinate kept him from pushing further.
- Laher said he did not suspect any irregularities in the bidding process.
Fear of being perceived as insubordinate led Transnet executive Yousuf Laher to no longer question the decision of the railway, logistics, ports and oil pipeline company to pay R4.4 billion in the acquisition of 100 electric locomotives from China South Rail, instead of a minor. price.
Laher, executive manager of the finance department for Transnet’s Freight Rail, told the state seizure investigation on Thursday, that at the time in 2014, he had done everything he could to raise his concerns with his top former Transnet CFO Anoj Singh. because he didn’t know how a much higher price had come to be. Laher was part of the negotiation and evaluation teams for Transnet’s controversial acquisition of 1,064 locomotives and an additional 100 electric locomotives, in which he was arrested at the last minute.
He told the investigation that the initial quote was R3.8 million per locomotive, for a total of R3.8 billion, and was from the suspended CEO of Transnet Engineering, Thamsanqa Jiyane, but a reasonableness calculation by Laher put the price in R41 million per locomotive. . Two days after the negotiations, he was told that then-CEO Brian Molefe had set himself at 44 million rand, a decision he made in separate meetings and without board approval.
The contract for the 100 locomotives was awarded to China South Rail, which had initially quoted Transnet R49 million per locomotive.
Test leader, attorney Anton Myburgh, questioned Laher about whether he suspected corruption was involved in the award of tenders for the 100 locomotives.
“In that time period, no, I had no suspicions of anything adverse happening. Maybe it’s because we were so involved in the details. It was a very pressurized environment. We were dealing with multiple issues at the same time,” Laher said.
He added that although he did not believe there was any wrongdoing, he had questioned Singh, the bidders and other parties to the negotiation such as the Transnet legal team. But he did not go any further because he feared being insubordinate.
“I gave him my honest advice and we had a debate, to the point that the debate became vigorous and if I continued down the line, it might have been insubordination, but that was a very small fear in the back of my mind,” he explained. that he was giving me at the time seemed reasonable, “Laher explained.
Singh was known to raise his voice and have an erratic temperament and Laher did not want to take the wrong side, according to the investigation.
The explanation they gave him about the increase was that the locomotives were not the same and had different specifications, which drove the price up. He said Singh also did not say that the decision on the increase was made by the subcommittee of which he, along with Molefe and former Transnet executive Siyabonga Gama, were part.
Laher said he believed Molefe had made the final decision, as he was the oldest member of the committee and did not find it strange.
Former Transnet Freight senior manager Francis Callard previously told the commission that Laher had not been forthcoming with information about the bidding process and his role in it. Laher has refuted his claims.
