17 Maret 2013

[170313.EN.BIZ] South African Anti-Corruption Body Probes Chinese Locomotive Deal

SOUTH Africa's Public Protector, an independent, state-appointed anti-corruption organisation, is investigating a railway contract signed last year by the state-owned logistics group Transnet with China's Zhuzhou Electric Locomotive Company.

Zhuzhou Electric Locomotive is a subsidiary of the state-owned CSR Corporation Ltd, the largest manufacturer of electric locomotives in China.

The deal, involving the purchase of 95 electric locomotives, is part of a ZAR300 billion (US$32.5 billion) upgrade to eliminate bottlenecks on Transnet railways and ports, Reuters reports.

But the Marxist party, the Workers International Vanguard, claims the Chinese locomotives are similar to those sold in neighbouring Namibia in 2005, and were found to be of such poor quality they had to be withdrawn from service.

Said party secretary Shaheed Mahomed: "Transnet management must have been well aware of this history. This raises the question as to how did it come about that the tender was still awarded to them."

Source : HKSG.

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