The Special Investigating Unit (SIU) has provided evidence in court to detail how two Transnet employees, accused of fraud in a R33m disposable breathalyser straws tender “which should have cost R315,690”, received payments before and after the tender.
The two former Transnet employees, the executive manager responsible for group business continuity, Lerato Makenete and former executive manager for safety, Landela Madubane, are accused of defrauding the entity of millions of rand by colluding with the businessmen who won the “unlawful” tender.
Both are opposing the SIU’s application to have the tender declared unlawful and deny the allegations.
The controversial tender for the straws was awarded to three companies, Ramoyadi Air Conditioning and Electrical, Ndzalo 2 Trading and Eagle Ropes in April 2020. The straws were used to test employees for alcohol.
The SIU provided the Special Tribunal last week with a graphic which detailed several payments made to Madubane and Makenete and linked these to the Transnet tender.
The tribunal has a statutory mandate to recover public funds lost through corruption and fraud.
“The SIU has received and analysed the bank statements of all the respondents. It is evident from the bank statements that shortly after Transnet paid the fourth, sixth and eighth respondents, [three companies awarded the tender] they made unexplained and unjustified payments to the thirteenth respondent and fifteenth respondent [Pearly Ways Consulting and Projects and NJM Trust] totalling almost R19m,” SIU forensic investigator Gerrie Isaacs’ affidavit reads.
“The thirteenth respondent and the fifteenth respondent then also made various unexplained and unjustified payments to other entities and individuals, for the benefit of the other respondents including Makenete and Madubane.”
The money trail graphic provided by the SIU showed Madubane received R121,791, R328,408, R350,000 and R175,742. The amounts came from two different accounts which the SIU linked to the tender winners.
According to the SIU Makenete received payments including R500,000 and R94,142 as well as other payments. The dates reflect that the payments were made before and after the Transnet tender.
The respondents in the case will get an opportunity to argue on the contents of the money flow graphic in April.
The SIU, represented by Daniel Berger, made headway last week in the case as about five accused agreed to pay the state millions.
NJM trustees Nyambeni and Malulo Maphalaphathwa, Mpariseni Mogovhani and Bethuel Mudau reached an agreement with the SIU to pay back R7m to the state in the next seven months. In agreeing to pay the money the accused were absolved from prosecution.
The agreement was reached despite NMJ Trust having denied the corruption allegations. It said the money it received was lawfully obtained after it had supplied Ramoyadi Air Conditioning and Electrical with straws.
Another accused, Azola Nyingwa, agreed to pay the state R767,000.
The tribunal hearing last week experienced delays as some of the accused had no lawyers acting for them, as they claimed being unable to afford legal services. This included the businessmen accused of having received millions through the tender.
The accused who have not settled with the SIU will plead their cases before judge David Makhoba in April.
The SIU argues Transnet paid R29.99 per straw instead of 29c. Transnet purchased 1,053,200 in total.
Madubane denied the allegation that he had inflated the prices. The state, however, contends he deliberately raised the cost of the straws with the intention of defrauding Transnet and enriching himself.
“The schedule recorded, in option 3, that the cost of straws was R29,99 per packet of 100, meaning a cost of 30c per straw. Madubane also knew that the cost per straw was 24c. He could not have thought that the cost was R29,99 per straw.
“Had the price been correctly calculated according to the schedule that was attached to the revised memorandum, the total cost would have been R315,690 instead of R31,585,468.”
The total cost of the tender with VAT and transport fees amounted to R33m.
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