"Arrest warrant will be issued to at least one Gupta" - City Press sources

Ajay and Tomy Gupta

#GuptaLeaks is going global: Two more multinational corporations implicated in kickback scandal

State capture is going way beyond the state

"Arrest warrant will be issued to at least one Gupta" - City Press sources

Ajay and Tomy Gupta

It seems that software giants SAP aren’t the only international company alleged to have bought their way into positions of power…

Bank and accounting records show that two manufacturers of heavy industrial equipment – Liebherr International (Swiss) and Shanghai Zhenhua (Chinese) gave the Guptas almost R100 million for Transnet to give them a crane-supply contract for SA ports.

AmaBhungane were first alerted to these dodgy dealings four years ago when an anonymous tipster got in touch with them regarding their research.

The source told the investigative team that crane suppliers were paying the Guptas to take them on board:

“The cranes that are being supplied to the ports from [Shanghai Zhenhua] are with Guptas. Ask Liebherr. While they were the preferred supplier, they were approached by the Guptas to do a deal who then referred them to their local [black economic empowerment] partners, who in turn spoke to [then Public Enterprises Minister] Malusi Gigaba. By then Guptas had done a deal with [Shanghai Zhenhua].”

Read: Reportedly dodgy R100m payment sparks US and German investigation into Guptas 

The circumstances are made even more suspicious as Brian Molefe unveiled the Zhenhua cranes during a ribbon cutting ceremony, alongside Gigaba. At the time, Molefe told the press that the tender was “transparent”.

We may have to investigate if Brian Molefe understands what that word actually means. He has recently been booted out of Eskom for his shady deals with the Gupta family, and this implication only muddies the waters further.

The tipster has stated a payment nearing R55 million was made by the Chinese firm to the Guptas in 2011, to secure their R1.2 billion contract for the ship-to-shore cranes.

Read: #GuptaLeaks – CSA wrote off R2 million in Gupta debt

The cash flooded into the Indian billionaires’ account three months after the deal was announced, beginning with a R12.6 million payment from Zhenhua in December 2011 to Dubai-based company JJ Trading.

That stinging in your nostrils just now is the whiff of corruption: JJ Trading have been involved in another Gupta-kickback scandal with China South Rail and their Transnet locomotives tender.

JJT received R1.4 billion from the Chinese operation. The wheels of dirty business have been thoroughly greased. The Guptas are taking state capture beyond the state, and ensuring that they control South Africa’s monopoly.

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