TimesLIVE reports former Transnet group CEOs Brian Molefe and Siyabonga Gama are out on bail after their arrests on Monday morning on charges of fraud and contravening the Public Finance Management Act.
The charges relate to millions paid by Transnet to Trillian Capital Partners for organising a R30bn club loan to help buy 1,064 locomotives. It was allegedly a double payment as Transnet had already paid Regiments Capital for the work. Trillian allegedly did nothing to earn the fee but still invoiced Transnet. The two MK party MPs appeared in the Palm Ridge Specialised Commercial Crimes Court and were released on R50,000 bail each pending more investigation. They were arrested on matters related to their roles at the state-owned rail, ports and pipelines entity. Allegedly due process was not followed, which led to the initial cost of R38bn ballooning to R50bn, including the dodgy R93m payment to Trillian for the benefit of the Gupta family. The accused are alleged to have enabled and ensured that costs were inflated and that their preferred bidder was unduly advantaged. They are among 11 accused in another Transnet fraud and corruption case involving about R400m that is before the Johannesburg High Court.
- Read the full original of the report in the above regard by Isaac Mahlangu at BusinessLive (subscriber access only)
- Read too, Former Transnet executives in court over multibillion-rand locomotive deal from 2011, at Daily Maverick
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