Gupta-linked firm scored R227m in loan swaps for Transnet, says acting CEO

Regiments Capital allegedly performed the task for the SOE, despite company's treasury team being more than capable of doing itGupta-linked company Regiments Capital allegedly scored R227m for carrying out loan swaps on behalf of Transnet — a task the state-owned company’s treasury team was more than capable of doing itself.

According to Mahomedy, in December 2015, then Transnet treasurer and state capture-implicated Phetolo Ramosebudi recommended that the floating interest rates on the club loan be converted to a fixed interest rate. This was despite members of his team warning against the move as it would incur a greater financial obligation for Transnet.

Mahomedy made the statement in his affidavit to the commission, parts of which were read by advocate Phillip Mokoena, who was leading evidence. Mahomedy was the group’s acting CFO when he penned the affidavit. “Certain transactions were approved through normal processes and some of the transactions did not go through the governance processes prescribed within Transnet. If we look at the Neotel transaction, there was an approved memorandum to appoint Neotel in October 2013,” he said.“In November, a memorandum was signed by [then CEO Brian Molefe] nullifying the decision of the people who approved the [previous] contract and replacing Neotel with P-Systems.

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