South African Probe Urges Suspension of Controversial US$1.2-Billion Bombardier Locomotive Deal
GEOFFREY YORK - JOHANNESBURG - PUBLISHED MAY 22, 2018
An internal investigation has urged the South African government to consider suspending a US$1.2-billion contract with Bombardier Inc. as part of a wider probe into corruption and soaring costs in a US$5-billion locomotive project.
Canada's export agency, Export Development Canada, provided US$450-million in financing for the locomotive project to help Bombardier become one of four manufacturers to secure contracts in the deal.
The cost of the locomotive project ballooned by nearly 40 per cent after South Africa's controversial Gupta family gained influence over procurement decisions at South Africa's state-owned freight company, Transnet.
The Guptas, now the targets of arrest warrants and police raids, were at...