South African minister demands freeze on Bombardier payments after corruption probe

In this Feb. 22, 2017, file photo South Africa’s finance minister Pravin Gordhan, center, arrives at the South African parliament to deliver the annual budget speech in Cape Town, South Africa.

Schalk van Zuydam/The Associated Press

A senior South African cabinet minister has called for a halt in payments to Bombardier Inc. and three other manufacturers after investigations found evidence of corruption in a US$5-billion locomotive contract.

The move could affect more than US$700-million in payments to Bombardier. The Montreal-based company has strongly denied any wrongdoing in the contract awarded to it in 2014 by Transnet, the state-owned freight company that has been embroiled in corruption allegations linked to the Gupta business family and the son of former president Jacob Zuma.


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