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Transnet partner promised millions for help

Johannesburg - An ANC-linked empowerment partner in Transnet’s massive R50bn locomotives contract was promised more than R40m after he'd lobbied support for transport giant Bombardier’s successful 2005 Gautrain bid, Rapport reported on Sunday.

The newspaper published an extract from a highly confidential agreement between Peter-Paul Ngwenya, a local businessman and former Robben Island prisoner, Bombardier and a Tunisian businessman with links to role players in South Africa’s arms deal.

Ngwenya is now an empowerment partner in Transnet's latest R50bn contracts for new locomotives.
 
The agreement, signed by the parties in 2010, stipulated that Bombardier would pay the Tunisian businessman, Youssef Zarrouk, who’d been appointed by the company as a “representative” in the Gautrain tender, an undisclosed sum of money.

Zarrouk, in turn, had to pay Ngwenya $5m (then roughly R39m) and $300 000 (about R2m to 3m then) in separate payments.

Ngwenya filed a summons against Bombardier in the South Gauteng High Court in 2011, after Zarrouk allegedly only paid Ngwenya US$450 000 (about R3m to 4m).

In his court application Ngwenya described himself as an “influential individual in political circles (and) former Robben Island prisoner arising from his membership and/or association with the African National Congress (ANC)".

Strategic partnership

He maintained that he was tasked to “lobby support” for Bombardier’s Gautrain bid and develop and maintain "strategic partnerships" during the bid process.

The court did not rule on the merits of Ngwenya’s claim, but instead ordered certain preliminary defences to be established first.

Ngwenya is the chair and a shareholder of Makana Investment Services, which has been coupled with China North Rail in the latter’s R7bn to 8bn contract to deliver diesel locomotives to Transnet.

Ngwenya is a former business partner of British weapons agent Richard Charter.

Charter had been implicated in alleged bribery in South Africa’s arms deal. A mysterious canoe accident on the Orange River claimed his life in 2003.

Zarrouk has also been tied to Charter and French arms dealer Jean-Marc Pizano. The latter has also been implicated in alleged irregularities related to the arms deal.

China North Rail stated that Ngwenya did not act as a political consultant in its Transnet tender.

Bombardier denied having any direct ties to Ngwenya and maintained that his contractual relationship with Zarrouk is a matter beyond the company’s control.

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