By Lehlohonolo Lehana.
The Transnet fraud and corruption case involving former executives has been postponed to April ahead of being transferred to the high court for trial.
Eleven accused – includes Transnet’s former group chief executives Brian Molefe and Siyabonga Gama as well as the parastatal’s former group chief financial officer Anoj Singh, former group chief financial officer Garry Pita and former group treasurer Phetolo Ramosebudi – on Wednesday appeared briefly in the Palm Ridge Specialised Crimes Court.
The group appeared alongside McKinsey and Companies SA, represented by its employee Goitseone Mangope, Regiments Capital directors Niven Pillay and Litha Nyhonyha, Regiments shareholder Eric Wood, Trillian Asset Management current director, Daniel Roy, and the owner of Albatime, Kuben Moodley.
They are charged with contravention of the Public Finance Management Act (PFMA), fraud, corruption and money laundering in connection with Transnet’s procurement of 1 064 locomotives in 2015 worth over R54 billion.
The State alleges Regiments Capital was irregularly onboarded and ended up benefitting 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, amongst other services, the sourcing of the China Development Bank loan and the Club loan which were in the amount of $2.5 billion, on behalf of Transnet [equivalent to R30 billion at the time].
State advocate Thembela Bakamela told the Palm Ridge specialised commercial crimes court on Wednesday that the matter would be postponed to April 20.
Legal representatives of the accused confirmed to the court that they had been presented with an “unsigned” indictment and detailed disclosures.
It was confirmed that April 20 would be a “holding date” to be used to assess the case before parties decided on their next steps.
Meanwhile proposals to Transnet by automotive and other potential customers for the state-owned company to develop the southern rail corridor to the Eastern Cape – to reduce dependence on the Port of Durban in KwaZulu-Natal – appear unlikely to result in this corridor being developed any time soon.
Transnet Freight Rail (TFR) spokesperson Dikatso Mothae said the increase in rail capacity from Gauteng to the Port of Port Elizabeth will depend on the funding being made available.
Mothae said Transnet has spent R9 million on a prefeasibility study for the projected capacity ramp up on this route, and that the funding required for the infrastructure alone is about R1.6 billion.