Transnet sues to recoup Gupta-linked tender losses
Transnet has made good on its threat to sue its former executives, who were allegedly involved in the controversial 1 064 locomotives tender that saw the Gupta family and their companies score more than R5bn in kickbacks, according to City Press.
On Friday, Transnet sent a summons to Gupta-linked financial services company Regiments Capital, demanding it repay the R189m it was overpaid to provide financial services to Transnet in the locomotives acquisition process, the cost of which ballooned from R38.6bn to R54.5bn.
Transnet also sent a summons to its former chief financial officer Anoj Singh, former group treasurer Phetolo Ramosebudi, former group chief financial officer Garry Pita, and axed group chief executive Siyabonga Gama to pay back the money.
In papers filed at the Gauteng High Court (Johannesburg), Transnet demanded that ‘the defendants (one paying the other to be absolved) are ordered to pay the sum of R189.24m’.
Transnet is also seeking interest to be paid on the total amount, which will be determined by the court. The freight logistics group’s lawyers, Mncedisi Ndlovu & Sedumedi Attorneys (MNS Attorneys), gave the former executives and Regiments Capital 10 days to file notice to oppose the lawsuit.
City Press says it understands Regiments Capital, as well as Trillian Capital Partners to whom Regiments ceded the contract, were negotiating an out-of-court settlement with Transnet.
However, this could not be confirmed with the companies.
© Juta and Company (Pty) Ltd 2016
Article disclaimer: Juta expressly reserves the right, in its sole and absolute discretion, to alter or amend any criteria or information set out in this article without notice. Accordingly, any information, including journalistic articles, are not intended to constitute legal, financial, accounting, tax, investment, consulting or other professional advice or services. Before making any decision or taking any action based on the information contained in this article, which decision or action might affect your personal finances or business, you should consult a qualified professional advisor.