Report calls for Brian Molefe, Gupta buddies to be charged as criminals

Sunday newspapers have reported on an explosive new draft report by law firm Mncedisi Ndlovu & Sedumedi (MNS) Attorneys that turns up the heat on former Transnet and Eskom CEO Brian Molefe, as well as several others he worked with.

Molefe was Transnet CEO between 2011 and 2015 before moving on to Eskom, from where he controversially left on a pension of millions to briefly become an ANC MP.

City Press and the Sunday Times report that Transnet should lay corruption charges against Molefe as well as Transnet’s former chief financial officer Anoj Singh, board subcommittee chairperson Iqbal Sharma and “Gupta lieutenant” Salim Essa.

They, and others, have been implicated in so-called state capture on behalf of the Gupta family, close friends of former president Jacob Zuma.

Though he will probably never be able to stump up that kind of money himself, the MNS report, which was delivered to Transnet a week ago, suggests Molefe may have to repay part of the billions he is accused of squandering on the deal.

City Press reports that the lawyers described a R15.4 billion increase in the cost of the tender as “inexplicable, unreasonable and excessive”, while the Sunday Times suggests the amount he wasted comes to R19 billion.

The report relates to a tender to build 1 064 diesel and electric locomotives, the cost of which increased from R38.6 billion to R54 billion, and in the process allowed Gupta-linked companies to loot billions.

MNS found Molefe had allegedly misled the board into not informing the then public enterprises minister Malusi Gigaba about the escalating costs of the deal. He also told them they did not need to seek Gigaba’s approval, which the lawyers pointed out was “completely incorrect”.

Several other Transnet executives, including group chief executive Siyabonga Gama, also stand to be disciplined for their role in the disastrous deal.

MNS was commissioned in February to follow up on an initial (also damning) Werksmans report to investigate Transnet’s tender to build the locomotives, which was first issued in 2012 and awarded to General Electric, Bombadier Transport, China South Rail and China North Rail.

The report recommends Transnet should also lay criminal charges against Molefe in terms of the Prevention and Combating of Corrupt Activities Act and the Public Finance Management Act for approving the transaction two months before the board approved it.

City Press quotes the report: “It would not be unreasonable to conclude that Anoj Singh and Brian Molefe, as well as members of the Capital Investment Committee and BADC, either have failed to apply their minds one way or another, or had intended to provide misleading, incorrect and inadequate information to the board. On this basis, we recommend that Singh and Molefe, as well as members of Capic and BADC, should be held personally liable for their conduct.”

Molefe’s lawyer told the Sunday Times maintained Molefe should be treated as innocent until proven guilty and he was not prepared to fight the case “through the media”.

He said they would fight the case in court if Molefe was charged as per the MNS recommendations.