Msagala and IGS: How they siphoned millions through cheques from Transnet
Earlier, the court found Msagala guilty of taking money while employed by the SOE ordering that he and others including the company he was in cahoots with, IGS Engineering to repay R26.4 million to Transnet.
JOHANNESBURG - The dodgy dealing of former Transnet executive for capital projects Herbert Msagala and IGS Engineers have been laid bare during in Tuesday’s judgment in the Special Tribunal.
Earlier, the court found Msagala guilty of taking money while employed by the SOE ordering that he and others including the company he was in cahoots with, IGS Engineering, to repay R26.4 million to Transnet.
The Special Investigating Unit and Transnet had applied to the Special Tribunal to recover monies received improperly by Msagala from IGS Consulting Engineers, which was a supplier to Transnet while in the employ of the SOE.
The tribunal found that Msagala received various amounts from IGS Engineers and its director Sipho Sithole between 2015 and 2016 when the company received contracts from Transnet.
Msagala earned R3.8 million from his employment with Transnet while bank accounts reveal that he received over R20 million from IGS and Sithole between 2015 and 2016.
Among these was R15.6 million through cash cheques drawn against the IGS bank accounts and deposited either to Msagala’s bank account or his investment trust.
Special Tribunal Judge Lebogang Modiba delivered the ruling.
The court also found that four cheques of R500,000 each amounting to R2 million issued by IGS and reflecting Msagala’s details on the reverse side of the cheques.
There were also three cheques issued to him for R1 million reflecting Msagala’s details on the reverse side of the cheques.
R4 million was deposited into his account in tranches of R999,999.99 each.
The tribunal also said Msagala did not have a business account, challenging his assertion that the monies were earned through his side businesses.