Special Tribunal confirms preservation order against ex-Transnet executive

The Special Tribunal has confirmed a preservation order against former Transnet CEO for Capital Projects, Herbert Linyenga Msagala.

In a judgment handed down on Tuesday, Judge Billy Mothle ordered that Msagala’s movable and immovable properties be forfeited to the State in an effort to recoup an estimated amount of R18.4 million, spokesperson Selby Makgotho said in a statement.

“The preservation order granted as a rule nisi (an interim order) on 30 July is hereby confirmed,” Mothle ruled.

The preserved assets include a fleet of vehicles, several bank accounts held in his name and those of his trusts, a farm and other properties in Gauteng and Free State.

“It is alleged in the papers before the Special Tribunal that, during his tenure as Transnet executive, Mr Msagala took part in unlawful activities, which will be traversed in the ensuing action proceedings,” Makgotho said.

The tribunal had granted an interim order on 30 July, and ordered respondents to “show cause why, if it is found that they were engaged in unlawful activities, the order should not be made final”.

The arguments were heard earlier this month.

“In his ruling, Mothle ordered that the properties mentioned in the papers before the Special Tribunal, which include movable and immovable properties, and as confirmed and evaluated by the curator bonis, is declared forfeit to the State to the extent not exceeding R18.4 million. Mr Aviwe Ndyamara has been appointed as curator bonis.”

The judge also ruled that the interdict imposed on the Transnet Pension Fund to withhold the pension of Msagala remained, and was extended until the conclusion of the proceedings instituted against him in the tribunal, Makgotho said.

Msagala was ordered to pay the costs of the proceedings on an attorney and client scale, including the costs of the applicants’ two counsel, he said.

City Press previously reported that the Special Investigating Unit said, in an affidavit supporting its application, that it had established evidence showing Msagala had allegedly engaged in corrupt activities in 2015 and 2016, when he was a senior executive of Transnet, with contracted supplier engineering firm IGS Consulting.

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