Chinese rail deal under scrutiny in South Africa ‘State Capture’ corruption probe
- Corruption inquiry examines how a deal was made for 1,064 Chinese locomotives
- Chinese firm said it was cooperating with South African authorities
A blockbuster inquiry into corruption in South Africa is examining a deal with a Chinese train company that blew out to US$3.75 billion.
It is also probing “success fees” allegedly paid to firms linked to a billionaire family that has been associated with the country’s scandal-plagued ex-president.
Justice Raymond Zondo has been overseeing the so-called State Capture Commission of Inquiry since last August.
The inquiry is probing corruption by business associates linked to Zuma, who “captured” key state entities such as the country’s rail network agency, Transnet and Africa’s largest electricity generator and distributor, Eskom.
In recent weeks, Justice Zondo’s commission has heard testimony from whistle-blowers inside Transnet about a large contract awarded to locomotive manufacturer China South Rail (CSR).
Among other excesses, South Africa ended up ordering – though not from a Chinese firm, in this case – locomotives that were physically too large to run on South Africa’s electric rail network.