zapiro
In a recent cartoon, Zapiro highlights the fact that the ANC's Gwede Mantashe recently came up emptyhanded in an investigation into state capture by the Guptas.

Home » Guptas and Zuma’s Son Tried to Railroad R51 Billion Train Deal, Says Report

Guptas and Zuma’s Son Tried to Railroad R51 Billion Train Deal, Says Report

In the latest allegation against the Gupta family – and the biggest  by far in rand terms – two reports this weekend allege that they, together with Duduzane Zuma, tried to capture South Africa’s main rail company and get it to accept a R51 billion tender. The letter, which was obtained by the investigative team at amaBhungane, […]

By SAPeople Staff Writer
19-06-16 09:35
in Business
zapiro
In a recent cartoon, Zapiro highlights the fact that the ANC's Gwede Mantashe recently came up emptyhanded in an investigation into state capture by the Guptas.

In the latest allegation against the Gupta family – and the biggest  by far in rand terms – two reports this weekend allege that they, together with Duduzane Zuma, tried to capture South Africa’s main rail company and get it to accept a R51 billion tender.

zapiro
In a recent cartoon, Zapiro highlights the fact that the ANC’s Gwede Mantashe recently came up emptyhanded in an investigation into alleged state capture by, among others, the Guptas. Source: Twitter.

The letter, which was obtained by the investigative team at amaBhungane, was reportedly written by then CEO of Passenger Rail Agency of South Africa Lucky Montana, who confirmed this week he had written it in 2012.

The amaBhungane report, also covered by the Sunday Times, said the Guptas, President Jacob Zuma’s son – a partner of the Guptas in some of their other businesses – and colleagues met several times with then transport minister Ben Martins and Montana. They reportedly wanted Prasa to favour the China South Rail company, with which they apparently had connections, in a deal for 600 railway coaches.

In return, the letter apparently said, Montana was promised shares in the company. The Guptas apparently also demanded changes within the Prasa board. The report said Montana wrote the letter to the chairman of Prasa at the time, Sfiso Buthelezi, after he found out that the Prasa board was going to be restructured.

The latest report about the Guptas – who were the centre of allegations into state capture and trying to use their friendship with the president to strongarm cabinet minister decisions and their appointments – comes only weeks after ANC secretary general Gwede Mantashe seemed to give up on an investigation on state capture because only one written submission had been received.

The news is not good for Prasa, a state-owned enterprise which is known to be in bad shape after years of mismanagement, according to media reports. This week it was reported he company is trying to recover more than R2.6 billion spent on an irregular tender during Montana’s term of service. Last year Public Protector Thuli Madonsela brought out a report on this deal.

According to amaBhungane, Montana said he first met Rajesh Gupta and Duduzane Zuma at Martins’ residence shortly after the tender for the trains was announced, and they told him of their interest.

A French bidder, Gibela, was given the tender in late 2012. Duduzane Zuma did not furnish a response, according to the report, while the Gupta’s lawyer demanded a copy of the letter, but the newspaper refused to send it in order to cover the sender’s identity.