Transnet projected to have lost R1.8 bln in questionable contract

The Zondo commission on Wednesday heard that several payments to Gupta-linked Regiments Capital amounted to fraud.

Picture: www.transnet.net

PRETORIA - The state capture commission of inquiry heard how Transnet was projected to have incurred losses estimated at R1.8 billion as a result of questionable finance arrangements.

This was the evidence of corporate finance expert Jonathan Bloom.

Bloom was tasked with investigating several of Transnet’s contracts with financial advisory firms such as Gupta-linked Regiments Capital.

Bloom set out the costs to Transnet, which detailed a R12 billion loan converted from a floating rate to a fixed rate in a deal involving Regiments.

“The R850 million is the loss that has accrued to Transnet to date. Put in another way, that is the money Transnet paid to the counterparty as part of the agreement.”

Bloom confirmed to evidence leader advocate Paul Pretorius that the cost would then continue to rise.

Asked by Pretorius if one was to forecast the loss for the whole period, he said: “This would cost Transnet R1.8 billion.”

Earlier on Wednesday Bloom testified that several payments to Regiments amounted to fraud.

(Edited by Mihlali Ntsabo)