Transnet captured using sophisticated financial vehicles, CEO tells inquiry
Transnet acting group chief executive Mohammed Mahomedy spent two days describing numerous instances where procedures were flouted in order to benefit a handful of companies which were paid hundreds of millions of rands.
PRETORIA – Transnet acting group chief executive Mohammed Mahomedy believes the parastatal was captured using sophisticated financial vehicles, which siphoned money out of the company and covered the culprits’ tracks.
Mahomedy made the observations in his closing statement at the state capture commission of inquiry on Thursday.
He had spent two days describing numerous instances where procedures were flouted in order to benefit a handful of companies which were paid hundreds of millions of rands.
Mahomedy identified how he believed Transnet was manipulated to benefit a handful of people and companies.
“A focus on significant procurement transactions for goods and services which required willing participants, internally and externally, through supply development requirements from Transnet, local consulting houses were inserted by executives to identify opportunities and design schemes to syphon funds out of the company.”
He explained how the suspects got away with it for so long.
“The design and use of complex financial instruments that hid flaws to beneficiaries and created annuity losses for state entities. Some internal governing structures were deliberately weakened, overlooked and not utilised effectively.”
Deputy Chief Justice Raymond Zondo earlier described the waste of taxpayer money as horrifying.