Gigaba's woes mount as Treasury report implicates him in Transnet impropriety
Malusi Gigaba been fingered in a Treasury forensic investigation as having acted outside of his authority and having compromised the procurement process for 1,064 locomotives from China South Rail.
CAPE TOWN - Embattled former minister Malusi Gigaba may be out of the executive but allegations of impropriety against him continue to mount.
He’s been fingered in a Treasury forensic investigation as having acted outside of his authority and having compromised the procurement process for 1,064 locomotives from China South Rail.
The forensic investigation was released on Friday.
It also indicates that former Transnet CEO Brian Molefe and chief financial officer Anoj Singh misrepresented facts to the Transnet board in making a business case for the acquisition of the trains.
Malusi Gigaba resigned as Home Affairs minister this week, but his decisions as the Public Enterprises Minister are coming back to haunt him.
A Treasury forensic investigation says that he compromised the tender process for the controversial locomotives by signing the agreement between Transnet and China South Rail, something that was improper in his position as minister.
Gigaba acknowledges that it is his signature on the agreements but he’s told investigators that he doesn’t recall signing the agreement and notes that there’s no designation.
The investigation has also found that by making a public announcement about a R35 billion procurement of locomotives, Gigaba compromised the tender process by reducing competition from potential bidders.
READ: The final report from Treasury relating to Transnet investigations
Gigaba has also been found to have told Transnet executives to waive instructions from Treasury on the procurement of locomotives.
He also approved an increase in the cost of a 100 locomotives by a billion rand, without the necessary approvals from Treasury and the Transnet board.
Read all the full Treasury report here.