Five ex-Transnet executives, including Siyabonga Gama, granted bail

Five former senior Transnet executives arrested on Friday on charges of corruption have been granted bail totalling R425,000 by the Palm Ridge Specialised Crimes Court.

The former executives, including former Transnet CEO Siyabonga Gama, were arrested at the Brackendowns Police Station in the East Rand by the Hawks and the National Prosecuting Authority’s Investigating Directorate (ID).

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

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The other four accused in the matter are 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.

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

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.

Magistrate Nemavhidi imposed several conditions on their bail applications. These included not interfering with witnesses involved in the investigation, reporting to the nearest police station and handing over their travel documents.

State prosecutor advocate Thembela Bakamela did not oppose bail.

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

Magistrate Nemavhidi postponed the matter to 13 July 2022 for adding of further accused.

More arrests imminent

Speaking to the media shortly after the bail hearing adjourned, the spokesperson for the ID, Sindisiwe Seboka, said more arrests were pending in the case.

“At the heart of this particular prosecution is the ID basically saying that we are trying to recoup as much [of the looted state monies] and bring to book many of the people who took part in the alleged looting of R93.4 million of Transnet money for work that had already been done by a different service provider,” Seboka said.

‘Looted’ R93.4 million

According to the ID, 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 controversial 1064 locomotives deal.

Later in May 2015 Transnet appointed JB Morgan for advisory services.

However, it is alleged that from July to October 2015 the accused former Transnet executives started facilitating the termination of the JB Morgan contract and paid Gupta-linked Trillian and Regiments for services provided by JB Morgan.

Trillian was appointed in October 2015.

“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.

“Prior to that, payment by Transnet was made to Regiments for R189 million in June 2015 for the alleged same services,” the ID said in a statement.

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