State-owned logistics company Transnet has ordered Chinese locomotives company CRRC-E Loco to “cease activities” at its Pretoria Koedoespoort plant, where locomotive manufacturers, contracted as part of a group of companies to assemble locomotives, are based.
Mncedisi Ndlovu & Sedumedi (MNS) Attorneys, representing Transnet, last week sent letters to lawyers representing the Chinese electric locomotives manufacturers, instructing them to stop manufacturing the locomotives “with immediate effect”.
The company has been told to stop building pending the outcome of a review application of the notorious R54.5bn procurement contract for 1,064 locomotives. The contracts have already been declared irregular and unlawful.
CRRC-E Loco is the merger of China South Rail and China North Rail, which won three tenders worth more than R25bn to supply Transnet with locomotives. The first was for 95 locomotives, worth R2.7bn, the second for 100 locomotives, worth R4
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