Cosatu's investment arm benefitted from a dubious Transnet train deal

Cosatu's investment arm benefitted from a dubious Transnet train deal

- A witness at the Zondo Commission claims that Cosatu's investment arm benefitted from a dubious Transnet deal

- The deal involved hundreds of millions being paid to a consortium when no such payment was necessary

- Cosatu's secretary-general, however, claims that that the labour federation would not have known about the deal

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Roberto Gonsalves, an executive at Cadiz Corporate Solutions, testified before the Zondo Commission on Thursday regarding millions of Rands paid by Transnet to the China North Rail (CNR) consortium.

These were ostensibly for relocation costs, but the consortium was not entitled to the hefty payment.

Additionally, Kopano Ke Matla, the investment arm of Cosatu, received a cut of this payment, which totalled more than R650 million.

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Transnet paid the consortium to produce locomotives. They entered into an agreement whereby CNR would produce 232 diesel locomotives for Transnet. The total value of the contract was R9.7 billion, according to Business Live. 

Additionally, Transet paid CNR more than R600 million for "relocation costs". However, Gonsalves claims that CNR had nothing to relocate.

"In my opinion, I don't think we were entitled to the relocation costs," Gonsalves told the commission.

Kopano Ke Matla, the investment win of Cosatua, reportedly received a cut of this windfall. This has raised some question about Cosatu's role in the deal.

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However, Cosatu general secretary, Bheki Ntshalintshali, says that the investment arm is distinct from the labour federation. As a result, he says that Cosatu leadership would not have been aware of the deal.

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Source: Briefly.co.za

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