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Ex CEO Brian Molefe & Zuma’s close ally to be arrested? Here is what could lead to their arrests

Former Transnet CEO Brian Molefe and former CFO Anoj Singh could be next to be arrested. This week, another former CEO, Siyabonga Gama, and other former Transnet top executives, including acting CFO Garry Pita, ex-group treasurer Phetolo Ramosebudi, Regiments Capital's Eric Wood, and Trillian Asset Management director Daniel Roy, were arrested in a dramatic way.

They went to court in Palm Ridge because they were accused of breaking the Public Finance Management Act, as well as of fraud, corruption, and laundering money. Gama is the most well-known person who was arrested after the Judicial Commission of Inquiry into Allegations of State Capture finished its work and Chief Justice Raymond Zondo gave its report to President Cyril Ramaphosa.Transnet CEO Siyabonga Gama told MP’s that only Transnet management was vetted. Photo: Lindile Mbontsi

At the beginning of this year, the head of the National Prosecuting Authority (NPA), Shamila Batohi, said that major corruption cases would lead to arrests in the next few months. City Press has heard from reliable sources that plans to arrest Molefe and Singh are well along. Investigators have hinted that the two will be added to the charge sheet when Gama, who took over for Molefe, and others go to court in July.

"When they show up, Gama will get more charges on top of the ones she already has. This time, the charges will be about his role in getting the 1 064 diesel and electric locomotives, a source in the security cluster who knows what's going on with the Hawks and the NPA said. The cost of buying the electric and diesel locomotives went from R38.6 billion to R54 billion because of the deal to buy 1,064.See the source image

"They knew the police were looking for them. A few people in the Hawks and the investigative directorate have been asked questions informally. They know that it's only a matter of time. In the second part of Zondo's report on state capture, he said that from 2010 to 2018, the state-owned logistics company Transnet was involved in an illegal and corrupt scheme that helped the Gupta family and people connected to them.

Zondo suggested that the police look into Molefe, Gama, and Singh for a long list of wrongdoings, from corruption and racketeering to fraud and carelessness. Gama, Pita, and Roy were each given bail of R50,000 after their court date on Friday. Wood was given bail of R250,000, and Ramosebudi was given bail of R25,000. According to the directorate, which was set up to look into corruption claims from the state capture report, Transnet sent out a request for proposal in 2012 to get transaction advisory services to get $2.5 billion (the equivalent of R30 billion at the time) to pay for the purchase of the 1,064 locomotives.See the source image

In May 2015, the first contract to provide advisory services was given to the top investment bank JPMorgan. But the accused are said to have worked together to end the contract and give it to Trillian Capital, which has ties to the Gupta family, in October 2015. Mncedisi Ndlovu & Sedumedi Attorneys' forensic report from June 2018 showed how a lot of state money had been stolen.

The cost of the tender went up by R15,4 billion, which the report said was "inexplicable, unreasonable, and too much." The law firm's report also said that Molefe "misled" the board into thinking that it didn't need to tell Malusi Gigaba, who was minister of public enterprises at the time, about the deal's rising costs or ask for his approval, which was "completely wrong." According to the report, he told the board, "Given that [Molefe] was the group CEO before, Transnet should get back the money it lost because of what he did."See the source image

It also said that the then-CEO of Transnet, Gama, and other members of his executive team should be punished for their part in the deal. Gama has since been fired, and he is now trying to get his job back. The report also suggested that Transnet file criminal charges against Molefe under the Prevention and Combating of Corrupt Activities Act and the Public Finance Management Act for allegedly misleading the board about the reasons for and amount of the cost escalation and for approving the transaction two months before the board did.

The report also suggested that Transnet file criminal charges of financial mismanagement and violating the Public Finance Management Act against Singh for allegedly misleading the board, helping to drive up the tender cost by R2.7 billion, and supporting an R1.2 billion project that helped a rail company with ties to the Gupta family get R647 million more from the parastatal.

Sindisiwe Seboka, a spokesperson for the Investigative Directorate, wouldn't say anything about the upcoming arrests. She said that the Directorate didn't talk about things like this before they happened. "It wouldn't be fair if people found out they were going to be arrested from the news," she said. Molefe and Singh both refused to say anything.

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Transnet: Molefe and Singh also face arrest | Citypress (news24.com)

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Brian Molefe Eric Wood Garry Pita Trillian Asset Management Zuma

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