Locomotive company takes Transnet to court

Gustav Adams, a director at Sibanye, said the company was poised to launch a legal challenge against Transnet over the parastatal's alleged “unlawful interference in tearing up” Sibanye's portion of a contract for 50 “like new” locomotives.

Adams said Sibanye held a 50% share of the R800m contract and Electro Motive Diesel (EMD), a US based locomotive maker, the balance. Sibanye's lawyers were preparing papers and would take Transnet to the South Gauteng High Court.

Adams said Transnet signed the contract with Electro Motive Sibanye — a joint venture between Sibanye and EMD — in 2007.

Sibanye is accused of delaying delivery of the 50 locomotives and poaching Transnet staff. These claims have raised questions about suspected irregularities, which led to Gama being suspended last Tuesday, 1 September.

A source told Business Day at the weekend that Gama's decision to award the locomotive contract to Sibanye, which appeared to have little experience in renovating locomotives, was one factor that prompted the internal disciplinary action against Gama last month.

He also faces a charge of exceeding his authority by granting a R19m security tender to a company allegedly linked to Communications Minister Siphiwe Nyanda.

The source said the Transnet board agreed to Gama's request to include an empowerment partner, Sibanye, in the contract, but twice gave instructions that Transnet Rail Engineering should do the work.

However, Adams yesterday “refuted” claims about lack of experience and delays in the delivery of locomotives, saying these were “grossly inaccurate and have no substance”. A source close to the matter said yesterday Transnet Rail Engineering was to blame for the delays in delivering the locomotives.

Adams said the design for the refurbishing was Sibanye's intellectual property. “The concept emanated from a complete rebuild of a diesel locomotive engine and alternator and these were imported from the US into SA,” he said.

In the production of the locomotive, EMD was responsible for all foreign content and Sibanye for all local content.

Source: Business Day

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