Transnet’s R398.4m fraud, corruption case postponed to April 2023

The R398.4 million fraud and corruption case involving former Transnet executives has been postponed to 20 April 2023.

Transnet R398.4m corruption case

Eleven accused – including Transnet’s former group chief executives Brian Molefe and Siyabonga Gama as well as the parastatal’s former group chief financial officer Anoj Singh, former group chief financial officer Garry Pita and former group treasurer Phetolo Ramosebudi – on Wednesday appeared briefly in the Palm Ridge Specialised Crimes Court.

The group appeared alongside McKinsey and Companies SA, represented by its employee Goitseone Mangope, Regiments Capital directors Niven Pillay and Litha Nyhonyha, Regiments shareholder Eric Wood, Trillian Asset Management current director, Daniel Roy, and the owner of Albatime, Kuben Moodley.

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They are charged with contravention of the Public Finance Management Act (PFMA), fraud, corruption and money laundering in connection with Transnet’s procurement of 1 064 locomotives in 2015 worth over R54 billion.

Case due to be transferred to high court

During their court appearance, State advocate Thembela Bakamela informed the court the 20 April date would be a holding date before the case could be transferred to the high court for trial.

The defence also revealed that it was furnished with the draft charge sheet and the contents of the voluminous docket.

The group is arraigned on charges stemming from the locomotives transaction advisory tender which was awarded by Transnet to the McKinsey-led consortium in 2012, resulting in the procurement of 1064 locomotives worth over R54 billion.

The State alleges Regiments Capital was irregularly onboarded and ended up 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 R305 million. This agreement included, amongst other services, the sourcing of the China Development Bank loan and the Club loan which were in the amount of $2.5 billion, on behalf of Transnet [equivalent to R30 billion at the time].

“The accused also face charges linked to the R93.4 million paid to Trillian Asset Management in 2015,” said the spokesperson for the NPA’s Investigating Directorate, Sindisiwe Seboka, in a statement.

Compiled by Thapelo Lekabe

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