South Africa’s highest court has annulled a $430 million contract between the state-owned transport operator Transnet SOC and U.S. locomotive manufacturer Wabtec, citing proven corruption during the deal’s signing. This is reported by the railway transport news portal Railway Supply.

South Africa’s highest court has annulled a $430 million contract between the state-owned transport operator Transnet SOC and U.S. locomotive manufacturer Wabtec, citing proven corruption during the deal’s signing

Although the contract for 233 locomotives was terminated, both parties reached a court-approved settlement.

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Under the agreement, Transnet retains the locomotives, while Wabtec keeps the payments already received. Additionally, Wabtec will pay Transnet $3.8 million and provide an equal amount in credit to support local supplier development.

South Africa: Court Scrutiny on Transnet Contracts

Following this ruling, Transnet SOC and South Africa’s Special Investigating Unit (SIU) announced that three more contracts signed since 2012 may be cancelled. These deals include 232 electric locomotives from Bombardier Transportation, 240 diesel units from CRRC, and 359 electric locomotives from CRRC E-Loco Supply. The total value of these four contracts, including the one already voided, amounts to approximately $2.9 billion.

President Cyril Ramaphosa launched the anti-corruption probe into Transnet shortly after taking office in 2018. In 2022, a special commission found that Transnet had become a central vehicle for systemic looting during the tenure of former president Jacob Zuma. Billions in public funds were allegedly siphoned through the company during that time.

South Africa: Step Forward in Anti-Corruption Efforts

This court decision marks a critical milestone in South Africa’s fight against corruption. It may also lead to a broader review of other questionable state contracts signed under Zuma’s administration.

Source: www.timeslive.co.za, www.moneyweb.co.za

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