Molefe: Transnet didn’t buy locomotives from Mitsui 'because they were failing'
Molefe is continuing to testify at the state capture commission on the acquisition of locomotives.
JOHANNESBURG - Former Transnet CEO Brian Molefe has responded to claims that the state-owned enterprise would have saved R1.2 billion if it bought 100 locomotives from Mitsui and not China South Rail, saying the testimony was based only on assumptions.
Molefe is continuing to testify at the state capture commission on the acquisition of locomotives on Wednesday.
He said the assumptions were based on foreign exchange hedging and the decision to buy from China South Rail, also because he received information that Mitsui Locomotives were failing.
Molefe said the consultants that said the R38.6 billion estimated price of locomotives included hedging and escalation were making comparisons with knowledge of finance.
He maintains that the initial price didn’t include hedging and escalation, that’s why when bids were submitted the, price increased from R38 billion to R55 billion: “He is comparing prices on the basis of a person with a minimum understanding of finance should be comparing.”
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