The Transnet locomotives corruption case of the parastatal’s former CEO Brian Molefe and his co-accused will resume in January. This is in order to allow the state to provide the accused with further particulars.
Molefe faces allegations of being involved in corruption and fraud in the multi-billion-rand procurement of locomotives at state-owned entity Transnet.
Spokesperson for the National Prosecuting Authority’s Investigating Directorate Against Corruption (IDAC) Henry Mamothame confirmed the matter. He said Molefe, Anoj Singh, Siyabonga Gama, Garry Pita, Phetolo Ramosebudi, as well as Regiments Capital Directors Niven Pillay and Litha Nyhonhya, Trillian Asset Management’s Director Daniel Roy (Novum Asset Management), Kuben Moodley, and Albatime Pty Ltd owner, appeared before the Johannesburg High Court. They appeared on charges of the contravention of the Public Finance Management Act (PFMA) and fraud.
Postponed to January 31
Mamothame said the matter was postponed to January 31. This for the state to provide the accused with further particulars.
He said the accused’s charges include fraud, corruption, and money laundering. These stem from the locomotives transaction advisory tender awarded to the McKinsey-led consortium in 2012. It resulted in the procurement of 1,064 locomotives valued at over R54-billion.
Mamothame said Regiments Capital was irregularly brought into the contract. It benefited from Transnet’s irregular appointment. And this increased the contract’s value and scope to over R305-million.
“Their services included sourcing loans from the China Development Bank and the Club loan. These amounted to $2.5-billion, equivalent to R30-billion at the time, on behalf of Transnet. Additionally, the accused also face charges related to the R93.4-million payment to Trillion Asset Management in 2015. All the accused are expected back in court in January 2025. That is when the matter resumes,” said Mamothame.
Corruption Watch case
Meanwhile, in June this year, Corruption Watch filed a notice of withdrawal of their case against Molefe. It wanted him to be declared a delinquent director for alleged wrongs he committed during his time at the helm of power utility Eskom.
Molefe had been accused of having aided an alleged capture of Eskom by the Gupta family. This he did during the administration of former president Jacob Zuma. According to Corruption Watch, he was central to the booting out of Glencore-owned Optimum Coal Mine. This was in favour of Gupta-owned Tegeta.
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