The Special Investigating Unit (SIU) and Transnet have been granted a preservation order to freeze R4.2bn held in bank accounts linked to a locomotive supplier which it believes are the proceeds of unlawful activity.
Three tenders were awarded to CRRC E-Loco Supply (CRRC), a Chinese company, between 2011 and 2014 to supply Transnet with locomotives.
The SIU said on Tuesday the unit and Transnet had been granted the preservation order by the Special Tribunal to freeze R4.2bn in bank accounts linked to CRRC pending an application for the final forfeiture thereof.
The SIU believes the funds are the proceeds of unlawful activity and should be forfeited to the state.
The entities approached the tribunal after an investigation and interventions by the SA Reserve Bank (SARB) and the SA Revenue Service (Sars), which suspected the company paid kickbacks disguised as business development services agreements.
The agreements were suspected to be linked to allegations of state capture or maladministration and irregularities to influence where Transnet awarded the tenders.