Transnet loss to Gupta-linked firm estimated at R1.8bn

According to evidence supplied to the commission of inquiry by corporate finance expert Jonathan Bloom, Transnet is said to have incurred an estimated R1.8-billion in losses due to a contentious finance agreement.

Bloom investigated a number of Transnet contracts which included a R12-billion loan with Gupta-linked Regiments Capital.

It was discovered that the floating rate was converted to a fixed rate which resulted in Transnet accruing interest of R850-million.

Bloom said this cost will continue to rise and explained to evidence leader advocate Paul Pretorius that if they forecast the loss for the complete period of the agreement it will result in a loss of R1.8-billion to Transnet.

The commission heard that several payments had been made to Regiments, which is clearly fraud.