In connection with a R93 million corruption and fraud investigation, former Transnet CEO Brian Molefe and the similarly scandal-plagued former Chief Financial Officer (CFO) of the freight firm, Anoj Singh, have been detained.
According to reports, the issue is connected to the purchase of 1 064 locomotives in 2015. A number of other individuals, including Siyabonga Gama, the former group CEO, Eric Wood, a shareholder at the Gupta-affiliated Regiments Capital, Garry Pita, the former acting group chief financial officer, and Phetolo Ramosebudi, were detained earlier this year for their alleged involvement in the case (former group treasurer)
In connection with shady activities that allegedly resulted from the Transnet procurement, Brian Molefe and his co-accused in the case are set to appear in court at Palm Ridge.
Only a few hours have passed since the Hawks’ detention of the defendants before their court appearance.
In order to get money for the locomotives, the R93 million in issue is said to have been given to Trillian Capital, which has ties to the Gupta family.
According to Sindisiwe Seboka, a spokeswoman for the Investigative Directorate, “Transnet went on a Request for Proposal tender in 2012 to seek transaction consulting services to arrange money for $2.5 billion (equal to R30bn at the time) to support the purchase of the 1 064 locomotives deal.”
“Transnet hired JB Morgan for consultancy services in May 2015. The same Transnet employees began assisting in the cancellation of the JB Morgan contract from July to October 2015. In October 2015, they appointed Trillian as a consequence of a cancellation, according to Seboka at the time.