Africa

Molefe: Transnet didn’t buy locomotives from Matsui ‘because they were failing’

Today News || News Now

Molefe is continuing to testify at the state capture commission on the acquisition of locomotives.

A screengrab of former Eskom CEO Brian Molefe appearing at the state capture inquiry on 2 March 2021. Picture: SABC/YouTube

JOHANNESBURG – Former Transnet CEO Brian Molefe has responded to claims that the state-owned enterprise would have saved R1.2 billion if it bought 100 locomotives from Matsui and not China South Rail, saying the testimony was based only on assumptions.

Molefe is continuing to testify at the state capture commission on the acquisition of locomotives on Wednesday.

Ads

He said the assumptions were based on foreign exchange hedging and the decision to buy from China South Rail, also because he received information that Matsui Locomotives were failing.

Molefe said the consultants that said the R38.6 billion estimated price of locomotives included hedging and escalation were making comparisons with knowledge of finance.

He maintains that the initial price didn’t include hedging and escalation, that’s why when bids were submitted the, price increased from R38 billion to R55 billion: “He is comparing prices on the basis of a person with a minimum understanding of finance should be comparing.”

WATCH LIVE: Molefe back at state capture commission

RELATED:  James Selfe: I spent years calling for inquiry into Bosasa-govt contracts

Download the Eyewitness News app to your iOS or Android device.


Today News || News Now || World News || Politics || Health || Technology News || Education News

Source

Tags
Show More

Related Articles

Back to top button
Close