Transnet former CEO Brian Molefe and group CFO Anoj Singh, along with Regiments Capital directors Niven Pillay and Litha Nyhonhya, appeared in the Palm Ridge Specialised Crimes Court after the Hawks arrested them in connection with R398.4-million fraud and corruption charges on Monday.
Investigating Directorate spokesperson Sindisiwe Seboka said the former Transnet executives and their co-accused had been charged with contravening the Public Finance Management Act (PFMA) and fraud, while additional accused in the matter had been charged with fraud, corruption and money laundering.
The accused join former Transnet group chief executive 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 owner in the case.
“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. Regiments Capital was irregularly onboarded and ended up benefiting from the irregular appointment by Transnet in respect of the contract,” Seboka said.
“The contract value and scope for the services required was later escalated to more than R305m. This agreement included, amongst other services, the sourcing of the China Development Bank loan and the Club loan which were in the amount of $2.5bn, on behalf of Transnet, equivalent to R30bn at the time,” Seboka said.
The suspects also face charges linked to a sum of R93.4m paid to Trillian Asset Management in 2015.
She said the senior executives arrested on Monday had been granted bail of R50 000 each on condition of handing over their passports to the police. She said warrants of arrest had been issued for Salim Essa, as well as Ashok Narayan who is currently out of the country, and further arrests were also expected.
“This arrest and court appearance signifies a critical move in closing the circle in holding to account all those who are alleged to have been at the core of state capture in Transnet, and is one of the seminal cases that the NPA has committed to enrolling by the end of September,” Seboka said.
The matter was adjourned to October 14.
ID head Advocate Andrea Johnson said Transnet was considered “one of the primary sites of massive looting of state funds at the peak of the state capture project”.
“Today’s arrest and court appearance of additional senior executives reflects a significant milestone and outcome of our complex investigations. We, in collaboration with the Hawks, will ensure that we continue to follow the evidence and arrest and prosecute those who are fingered to have been alleged to be part of looting the state coffers. As the ID we have made commitments to reclaim the state and ensure that impunity is no longer a given,” Johnson said.
