Two more join Transnet alleged corrupt tender fraudsters

Two more individuals have joined former Transnet executives such as Brian Molefe in the multimillion irregular tender award scandal.

INVESTIGATING DIRECTORATE POUNCES ON MORE TRANSNET SUSPECTS

The National Prosecuting Authority’s (NPA) Investigating Directorate (ID) added the former principal and director of McKinsey SA, Vigas Sagar.

This is along with McKinsey SA’s employee Goitseone Mangope, said ID spokesperson Sindisiwe Seboka.

“Sagar stands accused in his personal and representative, while Mangope stands as current representative of the company.”

Sindisiwe Seboka

The two appeared before the Palm Ridge Specialised Court Crimes Court on Friday. They face charges of fraud, corruption and money laundering for a multimillion-rand tender which was irregularly awarded by Transnet.

The two accused form a large group of former Transnet executives and businesses who are charged in relation to the irregular tender.

These include former Transnet Group chief executives Brian Molefe and Siyabonga Gama; former Group chief financial officers Anoj Singh and Garry Pita, as well as former Group treasurer Phetolo Ramosebudi.

The other accused include directors of Regiment Capital Niven Pillay and Litha Nyhonhya and their shareholder Eric Wood.

Current Trillian Asset Management director Daniel Roy and Gupta-linked owner of Albatime (Pty) Ltd Kuben Moodley are also among the accused group.

“The former Transnet executives and their co-accused are charged with contravention of the Public Finance Management Act and fraud. The other accused are charged with fraud, corruption and money laundering,” Seboka said.

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HOW THE ALLEGED FRAUD AND CORRUPTION UNFOLDED

The charges stem from a locomotive’s transaction advisory tender, which was awarded by Transnet in 2012 to the McKinsey-led consortium. This resulted in the purchasing of 1 064 locomotives valued at over R54 billion.

On the other hand, Regiments Capital was irregularly placed on board and ended up benefiting from the irregular appointment made by Transnet.

“The contract value and scope of the services required was later escalated to more than R305 million.”

This large agreement included, among other services, the sourcing of the China Development Bank loan and the Club loan. These amounted to $2.5 billion – R30 billion at the time – on behalf of Transnet, Seboka said.

“The accused also face charges linked to the R93.4 million paid to Trillian Asset Management in 2015,” she said.

The court has deferred the matter to 14 October when Mangope will join his co-accused. Meanwhile, Eric Wood is expected to return to South Africa from the UK and Spain on Friday after he applied for his bail conditions to be relaxed on 7 September 2022.

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