Saica hears how Transnet error led to inflation of locomotives tender
The second day of the South African Institute of Chartered Accountants' disciplinary hearing against former Transnet and Eskom CFO Anoj Singh was spent interrogating more evidence that was presented by former Transnet employee Francis Callard.
JOHANNESBURG - The second day of the disciplinary hearing against former Transnet and Eskom CFO Anoj Singh was spent interrogating more evidence that was presented by former Transnet employee Francis Callard.
On Thursday, Callard showed the disciplinary committee spreadsheets which revealed that the financial model used when the Transnet locomotives contract was awarded to China South Rail (CSR) had an error.
Callard was called as a witness by the South African Institute of Chartered Accountants (Saica) in its disciplinary hearing against Singh, who faces eighteen charges of misconduct.
Once again, Callard told the disciplinary committee of anomalies that appeared in the locomotives procurement process, this time detailing how an error in the model made the price much higher after CSR won the tender.
He told the hearing that Transnet changed the pricing model after the bidding process was concluded.
Meanwhile, China South Rail was awarded the contract because its prices appeared much lower than those of other bidders.
However, despite the detailed testimony that had taken up two of the three days set down for the hearing, Callard did not directly implicate Singh in the anomalies pertaining to the error.
He only made such a link when referring to his belief that Singh misled the Transnet board.