The net is closing on suspects fingered in State Capture-related crime. Group chief executive of Transnet Brian Molefe, former group chief financial officer Anoj Singh, and Regiments Capital directors Niven Pillay and Litha Nyhonhya appeared before the Palm Ridge Specialised Crimes Court on Monday after their arrest by the NPA’s Investigating Directorate, assisted by the Hawks.
The senior executives arrested today were granted bail of R50 000 each.
The accused are Pillay, Nyhonhya, Molefe and Singh, and the bail conditions include the handing in of their passports.
Investigating Directorate (ID) national spokesperson Sindisiwe Seboka said the former Transnet executives and their co-accused are charged with contravention of the Public Finance Management Act 1 (PFMA) and fraud, while the other accused are charged with fraud, corruption and money laundering.
Seboka said the accused join former group chief executive of Transnet Siyabonga Gama, former group chief financial officer Garry Pita, former group treasurer Phetolo Ramosebudi, Regiments shareholder Eric Wood, Trillian Asset Management current director Daniel Roy (Novum Asset Management) and Kuben Moodley, Albatime Pty Ltd owner.
Seboka said the group are arraigned on charges stemming from the locomotives transaction advisory tender which was awarded to the McKinsey-led consortium in 2012, resulting in the procurement of 1 064 locomotives worth over R54 billion. She added that Regiments Capital was irregularly onboarded and ended up benefiting from the irregular appointment by Transnet in respect of the contract.
“The contract value and scope for the services required was later escalated to more than R305 million. This agreement included, among other services, the sourcing of the China Development Bank loan and the Club loan which were in the amount of $2.5bn, on behalf of Transnet (equivalent to R30bn at the time),” Seboka said.
She said the accused also face charges linked to the R93.4m paid to Trillian Asset Management in 2015.
Seboka said the state further issued warrants of arrest for Salim Essa and Ashok Narayan, who is currently out of the country. All of the accused are expected to return to court on October 14.
“This arrest and court appearance signifies a critical move in closing the circle in holding to account all those alleged to have been at the core of state capture in Transnet, and is one of the seminal cases that the NPA has committed to enrolling by the end of September,” Seboka said.
Head of the ID, advocate Andrea Johnson, said Transnet is considered one of the primary sites of massive looting of state funds at the peak of the state capture project.
“Today’s arrest and court appearance of additional senior executives reflects a significant milestone and outcome of our complex investigations. We, in collaboration with the Hawks, will ensure that we continue to follow the evidence and arrest and prosecute those who are fingered to have been alleged to be part of looting the state coffers. As the ID, we have made commitments to reclaim the state and ensure that impunity is no longer a given,” said Johnson.
The ID said more people are expected to be arrested linked to this matter.