‘Interests of Transnet, public coffers sacrificed to benefit Regiments’

Acting Transnet group chief executive Mohammed Mahomedy has testified about how the Gupta-linked consultancy firm was conflicted in its role, but this was never flagged at the parastatal.

FILE: A screengrab of Transnet acting group chief executive Mohammed Mahomedy at the Zondo commission of inquiry into state capture on 15 May 2019.

PRETORIA - The state capture commission of inquiry heard how Regiments Capital was acting as Transnet’s advisor, then as the executor of the transaction they advised on, and paid themselves handsomely for the work.

Acting Transnet group chief executive Mohammed Mahomedy on Thursday testified about how the Gupta-linked consultancy firm was conflicted in its role, but this was never flagged at the parastatal.

The company scored hundreds of millions of rands in so-called commissions for doing work Mahomedy said could have been done internally.

Mahomedy said Regiments was seriously conflicted but continued to receive significant contracts from Transnet.

“They acted as advisers to Transnet. They then acted as the executor of the transaction with Nedbank and Transnet. On the other side, they were acting as the asset manager for the pension fund. Regiments were conflicted in their function on many levels. In their different roles, they were being paid by different entities,” Mahomedy said.

He said the company was paid R227 million for facilitating a loan interest rate swap, which ultimately cost Transnet R1.4 billion in interest fees.

The evidence revealed how the interests of the parastatal and public coffers were sacrificed to benefit the company.

(Edited by Zamangwane Shange)