Popo Molefe describes ‘horror show’ graft at Transnet

Lifting the lid on the magnitude of rampant corruption at Transnet when he and 11 fellow board members assumed office in May last year, chairperson Popo Molefe yesterday described the state-owned enterprise (SOE) as “a horror show”.

He singled out former executives Brian Molefe, Siyabonga Gama and Anoj Singh as the “key architects of state capture” which led to an estimated R18 billion being siphoned out of the SOE.

Brian Molefe, whose pending appointment as CEO was first reported by the Gupta-owned The New Age newspaper in September 2010 – some months ahead of his actual appointment – later moved with chief financial officer Singh to head Eskom, with Gama taking over at Transnet.

Molefe told the Commission of Inquiry into State Capture there was lack of ethical leadership, prevalent flouting of procurement procedures and endemic malfeasance.

The new board moved with speed to take disciplinary action and institute civil claims against senior managers implicated in graft that would cripple the SOE, which “was on the edge of a cliff”.

He said there were negotiations between Transnet and companies that had been awarded illegal contracts as the SOE was determined to recoup questionable payments made.

Molefe said there was a clear pattern of implementation.

“They captured the decision-maker, like the CEO, and also identified others occupying strategic positions, like the CFO. We found little cliques who shared common understanding on how they wanted to implement procurement to benefit their friends. We found money flowing for work not done.

“Those committed to state capture brought cronies or turned those they found into cronies. If there was resistance, they removed them and appointed their own people in strategic positions who had no knowledge or qualifications.”

INFO

The actions Molefe’s board took included:

• Dismissing Siyabonga Gama and freezing his pension until he returns over R323 million he paid to Trillian and Regiments without just cause.
• Summons issued against Brian Molefe for over R79 million paid to Regiments without any work being done.
• A claim of over R303 million against Anoj Singh for unjustified payments to Regiments.
• Summons served against former group chief financial officer Gary Peter to recoup over R335 million for questionable payments to Trillian and Regiments.
• Over R282 million claimed from former group treasurer Phetolo Ramosebudi for payments made to Trillian without just cause.
• Over R11.4 million claimed from former head of procurement Edward Thomas for a payment made to Trillian for “advisory services”.

– brians@citizen.co.za

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