NATIONAL NEWS - Four former Transnet executives have been granted bail of R50 000 each with conditions. 

Transnet executives, Brian Molefe and Siyabonga Gama, the company’s former CFO, Anoj Singh, and top engineer, Thamsanqa Jiyane, appeared in the Specialised Commercial Crimes Court at Palm Ridge Magistrate’s Court in Ekurhuleni on Monday.  

Molefe and Gama were arrested after surrendering to police on Monday morning. Singh and Jiyane were also handcuffed on the same day.

The state did not oppose bail.

Bail ruling 

The magistrate ruled that there is no reason why the four men could not be released on bail. “There’s no reason to believe that the accused would endanger the safety of the public or any specific person. There are no reasons to believe that the accused will invade their trial, and nd there are no reasons to believe at present that the accused will intimidate or influence witnesses or that they will destroy evidence. 

“And lastly, there is no reason to believe at present that the accused will undermine it or jeopardize the criminal justice system. On this basis basis bail is granted and fixed,” the magistrate ruled. 

Charges 

The Investigative Directorate Against Corruption (IDAC) spokesperson, Henry Mamothame, said the four men are facing 18 charges of fraud, corruption and contravention of the Public Finance Management Act and Companies Act.

“These charges relate to the acquisition of three contracts for locomotives at Transnet between the period of 2011 and 2014”. 

Corruption 

Mamothame said that between 2011 and 2014, Transnet made a decision to expand and modernise its services, and there was a need for these contracts or tenders to be bid for. 

“The state will prove in court that processes were flouted. Hence, the accused appeared in court today”. 

Mamothame said the matter has been postponed to October 6 for final investigations to be concluded. 

‘Complex matters’ 

He added that the IDAC is dealing with very “complex matters.” 

“These are matters that emanate from the state capture now, in our approach, in our holistic approach as IDAC. We investigate the whole information that was provided in the State Capture Commission.

“Henceforth, you will realise that we have staggered our approach in terms of laying charges against or formulating charges against accused persons,” Mamothame said.

Locomotives 

Mamothame added this case also emanates from the acquisition of the 1 064 locomotives stemming from the previous case.

“But the facts are different. In this matter, we have three contracts, different from the first case that is set for trial in February. There are three additional contracts in addition to the acquisition of the 1,064 locomotives.

“These contracts are from the 100 which were supposed to be put on tender, and we have 95 again, and we have the entire 1,064, which was standard.  Now the flouting of processes in these three contracts, that’s where the state was able to come up with charges, formulate charges that we believe will be sustained in a trial,” Mamothame said.

The high-profile corruption case involving former Transnet executives is set to go to trial in 2026, with at least 70 state witnesses expected to testify.

Bail 

Asked about why the state had requested R200,000 bail for the four men, Mamothame said that the charges against them are serious.

“We also need to consider the amount that is involved in these charges that are laid against the accused and the seriousness of these charges. Therefore, the bail amount that we preferred was based on the fact that we are looking at these charges as very serious and could lead to a serious conviction at a later stage”.

Further arrests 

Mamothema did not disclose if there would be further arrests in the matter. 

“At this stage, I will not disclose anything regarding matters of investigations, however, we will move at this stage with the four that are facing the charges before the court.” 

Transnet tender 

The transaction advisory contract for 1 064 locomotives was initially awarded to global investment bank JP Morgan in May 2015, before the deal was cancelled and subsequently awarded to Trillian in October of the same year.

An invoice of R93.4 million was then submitted by Trillian through Daniel Roy, who served as a director of Trillian. The invoice was allegedly approved by Pita and Gama, and payment was reportedly made on 3 December 2015 to Trillian’s account.

Three days after payment was received, R74 million was paid to Albatime, owned by Moodley, without any apparent reason, according to the Investigative Directorate.

State capture 

In its report, the Zondo Commission recommended that the police investigate Molefe, Gama and Singh for their alleged roles in siphoning money from Transnet to the Gupta family.

A 2018 forensic report found that Molefe had misled the state-owned entity’s board about its obligation to inform then-public enterprises minister Malusi Gigaba about the spike in the project’s costs.

Article: Caxton publication, The Citizen

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