Transnet, SIU say Msagala ruling a key step in ensuring accountability

Herbert Msagala was found guilty of receiving illegal payments while employed by the SOE.

FILE: SIU’s head, Advocate Andy Mothibi. Picture: @RSASIU/Twitter

JOHANNESBURG - The Special Investigating Unit and Transnet say that the judgment ordering a former executive of the SOE to pay back money is a key step in ensuring accountability and consequence management.

On Tuesday, the Special Tribunal ruled that former Transnet executive for Capital Projects, Herbert Msagala, the supplier who made unlawful payments to him and others should pay Transnet R26.4 million.

Msagala was found guilty of receiving illegal payments while employed by the SOE.

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The SIU’s head, Advocate Andy Mothibi, said that the judgment was a continued implementation of consequence management to ensure that justice was served on all those found guilty of wrongdoing.

SIU spokesperson Kaizer Kganyago: "There are other cases involved in the High Court and the Special Tribunal awaiting adjudication which will result in further recoveries for the state."

Msagala illegally received multiple payments from Transnet service provider IGS Consulting Engineers between 2015 and 2016 amounting to over R20 million while he was employed by Transnet.

He also implicated his 17-year-old daughter in the criminality, with her name used to purchase property from the proceeds of the unlawful payments.

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.

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