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Inquiry commission heard how Gupta-linked Regiments overcharged Transnet by R90M

The Commission of inquiry into state capture heard on Friday how the Gupta-linked Regiments Capital charged Transnet R90-million for a service it didn’t need.

During the public hearings in Parktown, corporate finance expert Jonathan Bloom told the commission that Regiments had charged Transnet 0.15% to secure a loan worth billions of rands.

While 15% does not sound a lot if compared to 1%, when calculated on a large amount it means that Transnet were overcharged by R90-million.

Bloom explained that there was no reason to have employed the services of Regiment since Transnet funding department were fully skilled and capable to perform the functions required without outsourcing to a third party.

MNS Attorneys’ Tshiamo Sedumedi told the state capture commission on Thursday that the services of Regiments Capital were unlawfully contracted as transaction advisers to Transnet.

Regiments then increased the cost of their service to more than R25-million within two years.