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Criminal probes against Brian Molefe, Siyabonga Grama recommended

The Transnet board, Brian Molefe and his successor Siyabonga Gama changed the conditions of the bid for 95 locomotives after it closed, precluding potential bidders.

FILE: Brian Molefe. Picture: EWN.

CAPE TOWN - A Treasury forensic report has recommended that criminal investigations be launched against former Transnet CEOs Brian Molefe and Siyabonga Gama.

An investigation into the procurement of three sets of locomotives has revealed contracts with billions of rands were doctored, confidential information was shared and irregular payments were made to benefit preferred service providers.

Fundudzi forensic investigators say former Public Enterprises Minister Malusi Gigaba further comprised the tender process for locomotives by acting beyond his authority, and that China South Rail was irregularly appointed in the so-called 1064 tender at an inflated cost of almost R55 billion.

The investigation has revealed that Transnet officials, two of whom have already been suspended, went out of their way to help China South Rail win a bid for 95 locomotives.

The process was further compromised by former CEO Molefe communicating with the company during the bidding process, and the leaking of this communication to companies linked to the Gupta family.

The Transnet board, Molefe and his successor Gama also changed the conditions of the bid after it closed, precluding potential bidders.

READ: The final report from Treasury relating to Transnet investigations

Treasury Report Transnet by Primedia Broadcasting on Scribd

Molefe and former chief financial officer Anoj Singh, who has also been implicated in a Treasury report on Eskom, misrepresented facts to the board for the acquisition of 1064 locomotives.

That contract soared from an initial estimated cost of R38.6 billion to R54.5 billion.

It's been recommended that along with Molefe and Gama, the former Transnet board also be held liable for the wasted costs.

_Read the full Treasury report here. _

(Edited by Winnie Theletsane)

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