Extensive evidence being compiled in Transnet graft case says State

The State says it will need time to compile and present to the defence the volumes of documentary and electronic evidence related to the case against four former executives of Transnet.

Former Transnet chief financial officer Anoj Singh, former Transnet CEOs Brian Molefe and Siyabonga Gama, who are both Members of Parliament under the Umkhonto Wesizwe Party (MKP), and former engineering chief executive Thamsanqa Jiyane were each granted R50 000 bail by the Palm Ridge Specialised Commercial Crimes Court yesterday.

They face charges including contravention of the Public Finance Management Act (PFMA), fraud, corruption, and contravention of the Companies Act. Prosecutors argued that there was a substantial volume of evidence that still needed to be examined, necessitating a structured process for the defence to access all the pertinent information surrounding the charges.

At the heart of these accusations lies the R3.2 billion tender awarded for the supply of 95 locomotives to Chinese manufacturers, CSR and CNR—an arrangement purportedly established through favouritism rather than due diligence. This initial contract, marred by alleged misconduct, saw costs escalate to over R3.4 billion. Subsequent agreements for additional locomotives followed, with contract values ballooning from R3.8 billion to R4.8 billion and from R38.1 billion to R54 billion.

These developments form part of a broader investigation into Transnet’s controversial 2011 Market Demand Strategy (MDS), aimed at bolstering South Africa’s freight capabilities through significant investment in rail and associated infrastructure.

In response to enquiries, Transnet said through its Media Desk that it will continue to support the National Prosecuting Authority. “The organisation has completed its own investigations into the locomotive contracts and has instituted civil recovery litigation for the losses suffered. Transnet has implemented all the Zondo Commission recommendations applicable to the organisation,” Transnet said.

In court, State prosecutor Advocate Santhos Manilal alleged that the accused used their senior positions within the State-owned enterprise to manipulate procurement processes, inflate costs, and steer contracts toward favoured suppliers. “There are further investigations that I want to have finalised and then I want to disclose, not in piecemeal, but I want to disclose the docket in its entirety. So on the 6th of October, I will give the defence an indication of when we are going to disclose,” he said.

“I will now suggest a proper timeline and process of how we are going to disclose because of the volumes of documents involved in this particular matter, also the electronic evidence.”

The case was adjourned to October 6.

The MKP has called for fair treatment by the judiciary of its members, saying the charges were a direct attack on black professionals, especially those affiliated with the party.

MKP spokesperson Nhlamulo Ndhlela accused the justice system of engaging in a troubling pattern of retaliation against its party members. “We are also particularly alarmed at what appears to be a targeted campaign against black professionals and intellectuals, especially those affiliated with the party who once held strategic roles within SOEs, including Transnet,” Ndhlela said.

“These developments are reminiscent of unfair treatment as afforded to our president, who is yet to receive a legal process grounded on fairness and constitutional justice.”

According to the Investigating Directorate Against Corruption (IDAC) spokesperson, Henry Mamothame, during the process of acquiring locomotives to expand and modernise the country’s rail infrastructure, the accused allegedly flouted the tender process by irregularly appointing a company that did not qualify, CSR, to provide the 95 locomotives.

Mamothame said there were two other bids relating to the acquisition of 100 and then 1 064 locomotives, which were procured again with CNR due to the alleged flouting of processes by the accused. “This is a State Capture matter. During the State Capture Commission hearings, the country heard how billions were looted from Transnet. This case depicts the flouting of services and the generation of billions of rands for use not attributed to the rail modernisation project,” Mamothame said.

The GOOD party welcomed the criminal charges against the former Transnet executives. “This case is yet another example of the industrial-scale looting that took place under the cover of State capture, a project that robbed South Africans of infrastructure, integrity and justice,” said GOOD secretary-general Brett Herron. He added that the arrest of high-profile figures like Molefe and Gama is a critical step in showing that there are consequences for abusing public office and plundering State institutions. | Additional Reporting Mercury Reporter

THE MERCURY