R93m Transnet corruption case postponed to August for further investigations

The Specialised Crimes Court sitting in the Palm Ridge Magistrate’s Court has postponed the R93.4 million Transnet fraud and corruption case involving the company’s former CEO to 29 August 2022.

Former Transnet group chief executive Siyabonga Gama and his four co-accused made a brief appearance in court on Wednesday, on charges of contravention of the Public Finance Management Act (PFMA), fraud, corruption, and money laundering.

The matter is in connection with procurement fraud over a 2012 Transnet contract for transaction advisory services to secure R30 billion in funding for the now controversial 1 064 locomotives deal.

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In May this year, Gama became the first high-profile former head of a state-owned entity to be criminally charged on allegations of corruption related to state capture.

He was arrested with his four co-accused: Transnet’s former acting group chief financial officer, Garry Pita, the parastatal’s former group treasurer, Phetolo Ramosebudi, as well as Regiments Capital shareholder Eric Wood and Trillian Asset Management director, Daniel Roy.

All five men were released on bail totalling R425 000, while the sixth accused in the matter – Gupta fixer and businessman Kuben Moodley – was arrested in September 2021 and released on bail in February this year.

Adding further accused

The state had previously indicated that more arrests were expected in the case, but during court proceedings on Wednesday, it requested more time to carry out investigations.

The spokesperson for the National Prosecuting Authority’s (NPA) Investigating Directorate (ID), Sindisiwe Seboka explained the reasons behind the postponement.

“We requested more time to continue with our investigations in this regard. Investigations in high-profile matters do take time in order to get to court, and we want to make sure that by the time we add further accused, the evidence brought holds water,” Seboka said.

Alleged procurement fraud

According to the ID, in 2012 Transnet went on a request for proposal tender to get transaction advisory services to secure funding for the acquisition of the 1,064 locomotives.

Later in May 2015, Transnet appointed JP Morgan to provide the advisory services. However, from July to October 2015, the parastatal started facilitating the termination of the JP Morgan contract, which was later given to the Gupta-linked company, Trillian.

“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.

Prior to these transactions, Transnet paid Regiments R189 million in June 2015 for work allegedly done by JP Morgan.

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

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