The Investigating Directorate has added McKinsey SA, represented by Vigas Sagar, its former principal, and employee Goitseone Mangope, to the R398.4m Transnet fraud and corruption case.
Mangope appeared briefly in the Palm Ridge Specialised Commercial Crimes Court on Friday morning where he was added as an accused to the matter.
Investigating Directorate spokesperson Sindisiwe Seboka said Sagar would stand accused in his personal and representative capacity, while Mangope faces charges as a current representative of the company.
The other accused in the matter are Group Chief Executive of Transnet, Brian Molefe; former Group Chief Financial Officer, Anoj Singh; Regiments Capital Directors Niven Pillay and Litha Nyhonhya; former Group Chief Executive of Transnet, Siyabonga Gama; former Group Chief Financial Officer, Garry Pita; former Group Treasurer, Phetolo Ramosebudi; Regiments shareholder, Eric Wood; Trillian Asset Management current Director, Daniel Roy (Novum Asset Management); and Kuben Moodley, Albatime Pty Ltd owner.
The former Transnet executives and their co-accused are facing charges of contravening the Public Finance Management Act (PFMA) and fraud, while the other accused are charged with fraud, corruption and money laundering.
“The group are arraigned on charges stemming from the locomotives transaction advisory tender which was awarded to the McKinsey-led consortium in 2012, resulting in the procurement of 1 064 locomotives worth over R54 billion,” said Seboka.
“Regiments Capital was irregularly onboarded and ended up benefiting from the irregular appointment by Transnet in respect of the contract. The contract value and scope for the services required was later escalated to more than R305 million.”
This agreement included, among other services, the sourcing of a China Development Bank loan and a Club loan to the tune of US$2.5bn on behalf of Transnet (equivalent to R30bn at the time). The accused also face charges linked to a sum of R93.4 million that was paid to Trillian Asset Management in 2015.
The matter was postponed to October 14 when Mangope will join his co-accused in court.
Wood, who applied for relaxation of his bail conditions on September 7, 2022, is expected to return to South Africa today after being in the United Kingdom and Spain.
