LIVE FEED: #StateCaptureInquiry May 28, 2019

Commission of Inquiry into State Capture. Deputy Chief Justice Raymond Zondo. Picture: Karen Sandison/African News Agency(ANA)

Commission of Inquiry into State Capture. Deputy Chief Justice Raymond Zondo. Picture: Karen Sandison/African News Agency(ANA)

Published May 28, 2019

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Johannesburg - The Zondo commission’s probe into parastatal Transnet widens with more revelations expected about corruption allegations at the company. 

On Tuesday morning the commission will hear from Tshiamo Sedumedi from MNS Attorneys. 

On Monday the commission heard from former Transnet employee Gerhard van der Westhuizen. 

He told the commission that a consultancy company called Homix was paid million for brokering a deal between Neotel and Transnet yet it was never involved. 

Van der Westhuizen had earlier explained that Transnet had sold its IT network system to Neotel years prior. Transnet executives had begun to grow concerned about not owning its networks and made the decision to buy back the assets. 

He explained that Neotel had the upper hand during negotiations as Transnet needed the systems for its operations. Transnet had also awarded a contract for management of its IT systems to a different company and this would have placed it at a vulnerable position since the network ownership was under Neotel. 

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Van der Westhuizen had described the negotiations between the two companies as “tough”, but an agreement was reached with Transnet paying over R300 million. 

He admitted that Neotel may have inflated the prices, but Transnet had to procure the assets back. 

When he was asked about Homix and whether it was involved in the brokering the negotiation process between Neotel and Transnet, van der Westhuizen said he did not know the company and found it strange that it was paid for its alleged services. 

Homix billed Neotel R36 million of the payment it received from Transnet a day after an agreement was signed between Neotel and Transnet. 

The company has reportedly been linked to the Gupta family.

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