Group chief executive of Transnet Brian Molefe, former group CFO Anoj Singh, and Regiments Capital directors Niven Pillay and Litha Nyhonhya appeared before the Palm Ridge Specialised Crimes Court on August 29.
This is after their arrest by the National Prosecuting Authority’s Investigating Directorate (ID), assisted by the Hawks.
The former Transnet executives and their co-accused are charged with contravention of the PFMA and fraud, while the other accused are charged with fraud, corruption and money laundering.
“The accused joined former group chief executive of Transnet, Siyabonga Gama, former group CFO Garry Pita and former group treasurer Phetolo Ramosebudi, and also a Regiments shareholder Eric Wood, Trillian asset management current director Daniel Roy (Novum Asset Management) and Kuben Moodley, Albatime Pty Ltd owner,” said ID national spokesperson, Sindisiwe Seboka.
He said the group are accused of charges stemming from the locomotives transaction advisory tender awarded to the McKinsey-led consortium in 2012, resulting in the procurement of 1 064 locomotives worth over R54b.
According to Seboka, Regiments Capital was benefitting from the irregular appointment by Transnet in respect of the contract.
“The contract value and scope for the services required was later escalated to more than R305m. This agreement included, among other services, the sourcing of the China Development Bank loan and the Club loan which were in the amount of $2.5b, on behalf of Transnet – an equivalent to R30b at the time. The accused also face charges linked to the R93.4m paid to Trillian Asset Management in 2015,” she said.
The senior executives arrested were granted bail of R50 000 each. They are Pillay, Nyhonhya, Molefe and Singh and the bail conditions include handing in their passports.
The state further issued warrants of arrest for Salim Essa and Ashok Narayan who are out of the country. All of the accused are expected to return to court on October 14.
“This arrest and court appearance signifies a critical move in closing the circle in holding to account all those who are alleged to have been at the core of state capture in Transnet. This is one of the seminal cases that the NPA has committed to enrolling by the end of September,” explained Seboka.
Head of the ID advocate Andrea Johnson said Transnet is considered one of the primary sites of massive looting of state funds at the peak of the state capture project.
“Today’s arrest and court appearance of additional senior executives reflects a significant milestone and outcome of our complex investigations. We, in collaboration with the Hawks, will ensure that we continue to follow the evidence and arrest and prosecute those who are fingered to have allegedly been part of looting the state coffers,” he said.
As the ID, he said they have made commitments to reclaim the state and ensure that impunity is no longer a given.
More persons are expected to be arrested linked to this matter.
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