Gupta-linked firm 'fabricated' Nene letter

Gupta-linked business associates wrote and peddled a letter in the name of former Finance Minister Nhlanhla Nene – who has called it a ‘fake/fabrication’ – relating to the funding of Transnet’s multibillion-rand locomotive procurement. A Business Day report says the letter was found among hundreds of thousands of leaked Gupta e-mails. Written in Nene’s name, it was addressed to China Development Bank board chair Hu Huaibang, in January 2015. In June 2015, Transnet’s CEO Siyabonga Gama, then acting CEO, announced at a World Economic Forum media conference that the bank had agreed to provide Transnet with a R30bn loan facility. The facility was close to the amount paid to Chinese companies that won the greater part of the tender, China South Rail and North China Rail. The e-mail’s metadata show that the letter was actually written by Tewodros Gebreselasie, a senior economic adviser with Regiments Capital. Regiments is an investment company involved in the now controversial Transnet locomotive procurement project, which was worth more than R50bn. The Guptas are reported to have received more than R5bn in alleged kickbacks from China South Rail, which was awarded the bulk of the contract. Gebreselasie, according to the e-mails, sent the letter to former Transnet chief financial officer Anoj Singh – now Eskom chief financial officer – on 20 January 2015 and copied to former Regiments director Eric Wood, his boss. Wood had instructed Gebreselasie to write the letter. Nene reportedly told Business Day the letter was ‘clearly a fake/fabrication and could not have come from my office’. ‘It’s worrisome. This is completely unacceptable and the (Treasury) department must apply its mind to this,’ Nene said.