{"id":4858,"date":"2017-07-17T00:00:00","date_gmt":"2017-07-17T00:00:00","guid":{"rendered":"https:\/\/amabhungane.org\/amabhungane\/stories\/two-more-companies-that-won-transnet-tenders-paid-tens-of-millions-to-gupta-offshore-fronts\/"},"modified":"2024-09-22T20:25:27","modified_gmt":"2024-09-22T20:25:27","slug":"guptaleaks-more-multinationals-ensnared-in-transnet-kickback-web","status":"publish","type":"post","link":"https:\/\/further.co.za\/amabwp\/guptaleaks-more-multinationals-ensnared-in-transnet-kickback-web\/","title":{"rendered":"#GuptaLeaks: More multinationals ensnared in Transnet kickback web"},"content":{"rendered":"

As the #GuptaLeaks and other investigations publicly turn up more evidence, it has become clear that Transnet, with its annual revenue of more than R60-billion, was targeted as ground-zero for Gupta capture.<\/em><\/p>\n

The #GuptaLeaks have revealed that two more companies that won Transnet tenders paid tens of millions to Gupta offshore fronts.<\/p>\n

Bank and accounting records show that two heavy equipment manufacturers \u2013 Swiss-based Liebherr-International AG and China\u2019s Shanghai Zhenhua Heavy Industries Limited \u2013 funnelled more than R100-million to the Guptas, as Transnet awarded them contracts to supply cranes to South African ports.<\/p>\n

This brings to seven the number of large, mostly respected companies, known to have secretly paid Gupta fronts in connection with Transnet contracts.<\/p>\n

A forgotten tipoff<\/strong><\/h4>\n

Four years ago, an anonymous tipster told amaBhungane that Transnet crane suppliers were paying off the Guptas to get their contracts.<\/p>\n

The tipster said: \u201cThe cranes that are being supplied to the ports from [Shanghai Zhenhua] are with Guptas. Ask Liebherr. While they were the preferred supplier, they were approached by Guptas to do a deal who then referred them to their local [black economic empowerment] partners, who in turn spoke to [then Public Enterprises Minister] Malusi Gigaba. By then Guptas had done a deal with [Shanghai Zhenhua].\u201d<\/p>\n

Days before the tipoff, Gigaba and then Transnet CEO Brian Molefe had\u00a0stood side-by-side<\/a>, grinning behind a giant red ribbon, which Gigaba cut in presentation of seven new Shanghai Zhenhua cranes for South Africa.<\/p>\n

On the day, Molefe told reporters the tender was \u201ctransparent\u201d.<\/p>\n

Molefe later moved to Eskom, which he recently left in disgrace after evidence emerged that he courted the Guptas while Eskom and Transnet closed allegedly dirty deals for the Guptas.<\/p>\n

On Saturday, Transnet spokeswoman Viwe Tlaleane said: \u201cThe company is conducting its own internal enquiry and will investigate all allegations made. Where appropriate, it will enlist the services of independent experts, depending on the required expertise\u201d.<\/p>\n

Liebherr executive Dieter Schmid said: \u201cI can assure you that Liebherr has never had an \u2018extensive and direct relationship with the Guptas for years\u2019 as alleged in your e-mail.\u201d But he said the company was \u201cstill putting the pieces together\u201d and needed more time.<\/p>\n

Shanghai Zhenhua did not respond to questions.<\/p>\n

Paying to play<\/strong><\/h4>\n

As was claimed by amaBhungane\u2019s tipster, Liebherr\u2019s Gupta payments were indeed preceded by roughly R55-million from the Chinese. In September 2011, Transnet announced that Shanghai Zhenhua would build, deliver and commission seven tandem-lift ship-to-shore cranes for the container terminal at Durban harbour.<\/p>\n

According to Transnet documents obtained by amaBhungane, it would pay Shanghai Zhenhua $92-million (about R1.2-billion today) for the job.<\/p>\n

Three months later, money started to flow to the Guptas.<\/p>\n

Shanghai Zhenhua paid the first tranche of US$969 086 (R12.6-million) that December. According to the Guptas\u2019 accounting records, it went to a United Arab Emirates-registered company called JJ Trading.<\/p>\n

JJ Trading has also featured prominently in another Transnet kickback scheme. The #GuptaLeaks reveal China South Rail\u00a0entered<\/a> into a \u201cconsulting\u201d agreement with JJ Trading, related to Transnet\u2019s 2013 locomotive tender, and paid JJ Trading over US$107-million (R1.4-billion).<\/p>\n