A tribunal of the Special Investigating Unit (SIU) brought ‘unlawful’ Transnet contracts of about R56.9 billion before the courts.
Briefing the National Assembly committee on public accounts (known as Scopa) on Tuesday over investigations into irregularities, maladministration and corruption within Transnet, SIU lead investigator Gina Beretta-Pretorius said there were seven civil matters before the court – six at the tribunal and one in the high court.
Beretta-Pretorius said the R56.9bn was the value of the irregular and unlawful contracts and not recoveries.
Among the matters was the procurement of the 1 064 locomotives.
“On March 2021, Transnet and the SIU launched a review application in the Gauteng High against CRRC E-Loco (Pty)Ltd, Bombardier Transport, SA (Pty) Ltd, CRRC SA Rolling Stock (Pty) Ltd and Wabtec SA Technologies (Pty) Ltd. The civil litigation over the procurement of the 1064 locomotives is ongoing.
“A preservation order was granted into funds at the SARB, however SARS has a preferential claim thereon.
“There are two settlement agreements that have been signed and will be presented to the high court as the proposed just and equitable remedies,” she said.
Money recovered by the SIU amounted to about R113,6 million, but Beretta-Pretorius said this was increasing.
There have been 14 disciplinary referrals with some individuals dismissed, 92 referrals made to the National Prosecuting Authority, 60 Administrative referrals including SARS tax issues and blacklisting of companies. There has been one interim Presidential report.
Former Transnet executive Herbert Msagala was among those who the SIU acted against.
Beretta-Pretorius said they have been successful in obtaining a court order where more than R26 million was ordered to be paid by Msagala and a supplier.
“In the matter involving Msagala and others, the order was granted for joint and several liability. The SIU has already successfully frozen assets to the value of R14 million of Msagala,” she said.
The elite unit was mandated in terms of a 2018 Proclamation to probe unlawful acts and this was extended twice.
SIU head Andy Mothibi said they adopted a phased approach due to the significant volume and complexity of matters to be investigated.
“There has been significant progress made on Phase 1 and 2.
“The SIU has already concluded investigations into eight matters that are related to the Judicial Commission of Inquiry into State Capture into Transnet.
“We are pleased that Phase 3 is already under investigation and two matters are in the civil court.”
Mothibi noted that some employees resigned amid disciplinary action however civil action will still be pursued against them.
Cape Times