The fraud and corruption case against former Group Chief Executive Officer (GCEO) of Transnet Brian Molefe and his co-accused has been postponed for further investigations.
The other accused are former Group Chief Financial Officer Anoj Singh, former Chief Executive Officer Siyabonga Gama and former Chief Procurement Officer in the Transport Freight Rail (TFR) division.
The four are facing 18 charges including Contravention of the Public Finance Management Act (PFMA), Contravention of the Companies Act, fraud and corruption and were granted bail of R50 000 each.
Investigating Directorate Against Corruption (IDAC) spokesperson, Henry Mamothame, explained that the charges relate to Transnet’s strategic plans in 2011 to “actively create capacity, giving rise to their Market Demand Strategy (MDS)”.
The MDS was aimed at expanding and modernising Transnet’s rail, port and pipeline infrastructure.
“During the process of acquiring locomotives to expand and modernize the country’s rail infrastructure, the accused allegedly flouted the tender process by irregularly appointing a company that did not qualify, to wit CSR, a Chinese company to provide the 95 locomotives.
“Other due processes were not followed so as to advantage CSR and in the end a bid which was costed at a little over R3,2 billion was inflated and allegedly exceeded its contract value by over R231 billion, resulting in a payment of over R3.4 billion.
“There were two other bids relating to the acquisition of 100 and then 1064 locomotives were procured again with CSR due to the alleged flouting of processes by the accused. The 100 locomotives costed at R3.8 billion as inflated to R4.8 million and the 1064 locomotives costed at R38,1 billion to R54 billion,” Mamothame said.
Additionally, the four held key positions at the state-owned entity.
“It was their duty to perform due diligence and ensure that Transnet got value for its money. They, however, are alleged to have enabled and ensured that costs were inflated and that their preferred bidder was unduly advantaged.
This is a state capture matter.
“During the State Capture Commission hearings, the country heard how billions were looted from Transnet. This case depicts that flouting of services and the generation of billions of rands for use not attributed to the rail modernisation project.
“The arrest of the accused highlight how persons in positions of trust and power allowed themselves to be part of a corrupt relationship that sought self-enrichment as opposed to the enrichment of the country and its infrastructure,” Mamothame concluded.
The case is expected back in the Palm Ridge Specialised Commercial Crime Court on 6 October. – SAnews.gov.za
