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Former Transnet group CEOs Brian Molefe and Siyabonga Gama are on bail after their arrest 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.
The charges relate to Transnet’s plans in 2011 to expand and modernise the country’s port, rail and pipeline infrastructure over seven years, focusing on rail-friendly freight from road to rail.
In the process of acquiring locomotives to expand and modernise the country’s rail infrastructure, the accused are alleged to have flouted the tender process by irregularly appointing a company that did not qualify to partner CSR, a Chinese company, to provide 95 locomotives.
Due process
It is alleged 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.
That case includes former Transnet CFOs Anoj Singh and Garry Pita, as well as former group treasurer Phetolo Ramosebudi.
The former executives are charged with contravening the Public Finance Management Act and with fraud, while others are charged with fraud and money-laundering.
Update: June 30 2025
This story has been updated with new information.
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