Four former senior Transnet executives will face trial in the high court on fraud and corruption charges related to irregular locomotive contracts worth millions of rands.
The Palm Ridge Specialised Commercial Crime Court on Monday postponed the matter involving Brian Molefe, Transnet’s former Group Chief Executive Officer, and three co-accused until 18 November, to allow the National Prosecuting Authority’s Investigating Directorate Against Corruption (IDAC) to provide an indictment.
Molefe faces charges alongside Anoj Singh, the company’s former Group Chief Financial Officer, Siyabonga Gama, a former Chief Executive Officer, and Thamsanqa Jiyane, who served as Chief Procurement Officer in Transnet’s Transport Freight Rail division.
The four executives face 17 charges including violations of the Public Finance Management Act, fraud, corruption, and contraventions of the Companies Act.
The charges stem from Transnet’s procurement of locomotives intended to expand and modernise South Africa’s rail infrastructure. Prosecutors allege the executives flouted proper tender processes by irregularly awarding three major contracts for the supply of 95, 100, and 1 064 locomotives respectively.
“These irregular contracts resulted in substantial financial losses to Transnet and, by extension, the South African taxpayer,” said Henry Mamothame, IDAC spokesperson. “The State is committed to ensuring that those responsible for state capture and corruption face the full might of the law.”
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The executives’ bail of R50 000 each was extended, and they remain free pending their next court appearance.
Mamothame explained that the postponement allows prosecutors to finalise their indictment and prepare for the matter’s transfer to the high court, where more serious criminal cases are heard.
“We are confident in our case and look forward to presenting our evidence before the high court,” Mamothame said. “This matter represents a significant step in our ongoing efforts to hold accountable those who undermined state-owned enterprises during the state capture period.”
The locomotive procurement saga has been identified as one of the key examples of alleged corruption during the state capture era, when several state-owned enterprises were allegedly captured by private interests.
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