Gupta-linked company in line for R800m contract at Transnet

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A company with close ties to the Gupta family stands to make a handsome profit from an information technology contract worth R800 million at Transnet.

Ajay and Rajesh Gupta
Ajay and Rajesh Gupta

The Mail and Guardian reported on Friday that the contract had been “confined” to a single bidder‚ global software firm SAP‚ although it had yet to be awarded.

SAP’s bid documentation showed that it would allocate 60% of the value of the contract to a subcontractor‚ Global Softech Solutions (GSS)‚ owned by the Gupta’s Sahara Systems and a family associate.

Gupta holding company Oakbay Investments told the newspaper that it was “preposterous” that a global firm such as SAP could be pressured into the partnership.

However‚ minutes of a meeting between Transnet and SAP in January revealed that the parastatal’s technical team questioned the selection of a single subcontractor which did not appear to have a proven track record.

GSS is reportedly led by Leela Yemineni who previously worked as a consultant to Transnet and Indian citizen Mukul Teckchandani‚ a general manager at the Gupta’s Sahara Systems.

The office of Public Protector Thuli Madonsela is probing allegations of “state capture” by the Gupta family. Brothers Ajay and Atul Gupta have close business ties to the son of President Jacob Zuma‚ Duduzane.

Earlier this month a military contractor brought Gupta “state capture” allegations to court in a dispute involving parastatal arms manufacturer Denel.

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