Ex-Transnet executives back in court, more arrests expected

The fraud and corruption case against former Transnet executives, including the parastatal’s former group chief executive, Siyabonga Gama, on Wednesday returns to the Palm Ridge Specialised Crimes Court for the adding of further accused.

Gama, who is the first high-profile former head of a state-owned entity to be criminally charged on allegations of corruption, is set to appear in court alongside his co-accused – former Transnet acting group chief financial officer – Garry Pita, former group treasurer – Phetolo Ramosebudi, Regiments Capital shareholder – Eric Wood and Trillian Asset Management director – Daniel Roy.

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The group was arrested in May this year by the Hawks and the National Prosecuting Authority’s (NPA) Investigating Directorate (ID) over the R93 million fraud and corruption case relating to the procurement of 1 064 locomotives by Transnet.

They face charges of contravention of the Public Finance Management Act (PFMA), fraud, corruption and money laundering.

The sixth accused in the matter, Gupta fixer and businessman – Kuben Moodley, was arrested in September 2021, and appeared in court in February this year.

Bail totalling R425 000

During their last court appearance on 27 May, the accused were granted bail totalling R425 000.

Regional Magistrate Brian Nemavhidi granted Gama, Pita and Roy bail of R50 000 each, while Wood and Ramosebudi were granted bail of R250 000 and R25 000, respectively.

According to the ID’s spokesperson, Sindisiwe Seboka, in 2012 Transnet went on a request for proposal tender to get transaction advisory services to secure funding for $2.5 billion (equivalent to R30 billion at the time) to fund the acquisition of the 1 064 locomotives deal.

Later in May 2015, Transnet appointed American multinational investment bank and financial services company, JB Morgan, for advisory services.

From July to October 2015, the Transnet officials allegedly started facilitating the termination of the JB Morgan contract, which resulted in them appointing Trillian in October 2015.

Both Trillian and Regiments Capital are linked to the controversial Gupta family accused of state capture and corruption in South Africa.

“An invoice of R93.4 million was submitted by Trillian through Daniel Roy, who served as a director to Trillian.

“The invoice was approved by Pita and Gama, and payment was made on 3 December 2015, to Trillian’s account. Three days after that, R74 million was paid to Albatime, owned by Kuben Moodley, for no apparent reason,” Seboka said.

Compiled by Thapelo Lekabe

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