* All information referenced in this report has been sourced from the public domain.
The objective for this report is simple …
All the evidence presented herein has been in the public domain since at least 2017 and yet there have been no reports of any criminal nor civil cases put against CSR. Many NGOs have escalated the issue with the Chinese but alas, the potential beneficiary of a successful claim, remains quiet on this transaction. Why?
On the 28th May 2019 evidence was presented before the Commission of Inquiry into State Capture (“Commission”) on investigations into the various locomotive acquisition transactions [See here]. This evidence is in the public domain and for the purposes of this report, I have extracted only the concluding remarks as follows:
“CSR at all material times appears to have enjoyed a special relationship with Transnet.”
“Prior to and after the issuance of the RFP documents for the 95-electric locomotive, there were engagements and communication exchanged between Transnet officials and CSR.”
“The special relationship that CSR enjoyed with Transnet during the procurement process, as evidenced in meetings held and email correspondence between the parties, was unfair in that it created reasonable apprehension and perception that Transnet have been biased in favor of CSR.”
"It was irregular for Transnet to change the in the evaluation criteria during the evaluation process.”
“The reliance on the Codes of Good Practice was also legally flawed.”
On the 4th September 2012 CSR was awarded the contract to supply 95 electric locomotives to Transnet. By the 11th may 2017 Transnet had paid all contractual amounts to CSR which amounted to R2,68billion (excl VAT). All locomotives had been delivered and had attained the availability and reliability targets.
On the 15th November 2017 OCCRP [See here] published an article that detailed how CSR had made numerous payments to an entity solely owned by Salim Essa namely, Regiments Asia. In June 2020 amaBhungane released an article detailing the ‘kickbacks’ specifically for the 95-locomotive acquisition [See here] to Regiments Asia.
As an averaged South African citizen, I cannot fathom how Transnet has not acted on this information as yet! Why has Transnet not yet acted on something that appears to be a slam dunk? In case it is too confusing, allow me to dumb-it-down ….
Issues arising from the award and procurement process have been made public – can you act and declare the contract illegal? If not, why?
Can you at least try to claw back the $45,750,189 that has been made public via OCCRP, amaBhungane and Mr. Holden’s evidence before the Commission?
Here is the evidence summarized… please act!