Transnet paid McKinsey‚ Trillian and Regiments R3.26bn between 2005 and 2017.
This is one of the findings of Fundudzi Forensic Services following its forensic investigation for the National Treasury into Eskom‚ Transnet‚ McKinsey and others. The reports were released on Friday.
Fundudzi investigated allegations and irregularities in the appointment and management of work done by McKinsey‚ Regiments Capital and Trillian at Eskom and Transnet for:
- Advisory services in buying 1‚064 locomotives;
- SWAT 1;
- GFB breakthrough contract (sub-contractor);
- Coal contract;
- Kumba Iron Ore;
- Manganese contract;
- NMMP;
- and SWAT 2.
The report recommended that there should be criminal investigations into former Transnet executives Brian Molefe‚ Siyabonga Gama‚ Garry Pita‚ Anoj Singh‚ Edward Thomas and Phetolo Ramosebudi‚ as well as Trillian’s Daniel Roy and Johannes Faure.
The report discusses the procurement of 1‚064 locomotives from China South Rail and China North Rail. Their costs were inflated by R1.2bn and R16bn respectively.
Transnet paid McKinsey‚ Trillian and Regiments more than R3bn
Image: ARCHIVES
Transnet paid McKinsey‚ Trillian and Regiments R3.26bn between 2005 and 2017.
This is one of the findings of Fundudzi Forensic Services following its forensic investigation for the National Treasury into Eskom‚ Transnet‚ McKinsey and others. The reports were released on Friday.
Fundudzi investigated allegations and irregularities in the appointment and management of work done by McKinsey‚ Regiments Capital and Trillian at Eskom and Transnet for:
The report recommended that there should be criminal investigations into former Transnet executives Brian Molefe‚ Siyabonga Gama‚ Garry Pita‚ Anoj Singh‚ Edward Thomas and Phetolo Ramosebudi‚ as well as Trillian’s Daniel Roy and Johannes Faure.
The report discusses the procurement of 1‚064 locomotives from China South Rail and China North Rail. Their costs were inflated by R1.2bn and R16bn respectively.
Transnet funds used to guard public enterprises minister Gigaba: Treasury
The report found that:
The report recommended that the Transnet board recover the R82m illegally paid to Trillian.
The report also looked into a series of general freight business contracts awarded to McKinsey as the main contractor and Regiments as a partner. Transnet thought Regiments had gained enough experience from McKinsey to take the lead from McKinsey.
Criminal probe necessary against former Transnet CEOs Gama & Molefe - report
The report found that:
According to the report‚ in 2014 Transnet wanted to maximise its coal supply by improving its coal line to 2-million tons a week. Singh compiled a memorandum for Molefe on March 31 2014 to request approval from the group chief executive for the financing of the increased coal line and to award McKinsey the contract as consultants in the renegotiation.
The investigation found that:
The report recommended that Transnet recover R8.85m paid to McKinsey and R10.5m to Regiments because there are no documents to support these amounts. It said public enterprises minister Pravin Gordhan should bar former employees who abused the supply chain management system from being hired by state entities‚ or from doing business with them‚ for five years.
In 2014‚ Transnet renegotiated tariffs with Kumba Iron Ore.
Hawks must probe Eskom’s illegal deal with Guptas' Tegeta, report finds
The report found that:
The report recommended that Transnet recover the R12.476m and R7.689m.
According to the report‚ Tansnet paid McKinsey R1 993-trillion from March 1 2005 to March 31 2016. Here is a breakdown of the year-end amounts:
Transnet paid Regiments R1‚085-trillion from March 1 2013 to March 31 2017. Here is a breakdown of the year-end amounts:
Here is a breakdown of what Transnet paid Trillian Partners in the four months they were hired:
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