Callard to continue with his testimony at the State Capture Inquiry
Former Transnet Electrical Engineer, Francis Callard, is expected to continue with his testimony at the Commission of Inquiry into allegations of State Capture on Thursday morning at Parktown, Johannesburg.
Earlier this week, Callard said that McKinsey consulting agency did not want to take direction from Transnet’s technical team on railway operations when they were brought in to take forward the acquisition of the 1064 locomotives.
Callard said McKinsey’s final business case was misleading as it did not state the possible costs in escalated foreign exchange costs and borrowing costs.
Callard said that he did not agree with then Procurement official Gary Pita that the acquisition of the locomotives would create 28 000 jobs and R50-billion in economic impact as stated in McKinsey’s business case.
He said he didn’t know how McKinsey arrived at the figures.
Transnet’s major locomotive acquisition was approved for R38-billion, but costs subsequently escalated to R54-billion.