The Gupta family is alleged to have exerted a high degree of influence over the government and state-owned companies through its relationship with President Jacob Zuma. It has been widely alleged in South Africa that this extended to influencing the choice of government ministers.

One of the Guptas’ companies, the Tequesta Group, acted as a consultant to a Hong Kong-based subsidiary of China South Rail (CSR), which won a tender to supply 359 locomotives to Transnet in 2014. It was revealed that Tequesta was to be paid 21% of the contract fee awarded to CSR. On 5th September, Transnet officials were questioned about the matter by the parliamentary Portfolio Committee on Trade and Industry.

A representative for the Democratic Alliance on the Committee, MP Dean Macpherson, said: “Transnet is a hotbed for state capture with its levels of corruption…Surely we cannot allow for money to be flowing offshore to a company in Hong Kong that supplies the Guptas. It is unacceptable.” Transnet told the Committee that its own internal investigation into the matter was underway.

The case has caused outrage among trades unions involved in the transport sector, particularly because of planned job losses. Transnet wants to cut its workforce by 9,000 to just under 50,000 in order to cut its payroll costs by R4bn to R21bn. It currently spends 36% of its revenue on wage costs but it wants to reduce this to 31%. Very few employees have opted for voluntary redundancies.

The general secretary of the National Transport Movement, Ephraim Mpahlelele, said: “Transnet has been recklessly awarding tenders‚ even to the Gupta family‚ without having looked at the company's financial viability.

"In the process they’ve hurt the company and we’re saying all those executive managers who made those myopic decisions should be suspended and dismissed for negligence.”