Former Transnet execs charged over Zuma-era graft case. What we know
This comes after the government announced on Thursday last week that it had entered a process to allocate additional guarantees to Transnet to allow the company to cover at least all debt redemptions over the next five years and enable it to fund its capital expenditure program.
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Four former executives from the beleaguered transport company, Transnet, have been arrested and charged with multiple counts of corruption tied to a scandal that plagued the government of ex-president Jacob Zuma.
- Background of Corruption
The charges stem from allegations of graft that occurred during Zuma's presidency from 2010 to 2018. This period is known as "state capture," a term denoting the extensive plundering of state resources.
- The Accused
The individuals facing charges include former group chief executives Brian Molefe and Siyabonga Gama, along with the former heads of finance and procurement at Transnet. Their charges reflect a severe breach of trust in their roles.
- Nature of the Charges
According to the National Prosecuting Authority (NPA), the former executives face a total of 18 charges, including violations of the Public Finance Management Act, fraud, corruption, and infringements of the Companies Act.
- Corruption Case Details
This case specifically involves tenders awarded for a plan to expand and modernise South Africa's rail infrastructure, deemed essential for the nation’s economic framework. Notably, officials allegedly awarded a tender to an unqualified Chinese company, inflating the contract by approximately $13 million.
- Current Affiliations
Interestingly, both Molefe and Gama are still active in politics, serving as members of parliament with the uMkhonto weSizwe (MK) party, which is associated with Zuma.
- Bail and Court Proceedings
Although none of the accused have entered pleas, they were granted bail set at $2,800 each. Their next court appearance is scheduled for October, where further proceedings will unfold.
- Impact on Transnet
Transnet, responsible for managing South Africa's rail, port, and pipeline systems, continues to struggle under a mountain of debt exacerbated by corruption, theft, and inadequate maintenance. Reports indicate that the company was effectively turned into a financial sinkhole for corrupt dealings.
- Investigative Findings
A detailed investigation led by former Chief Justice Raymond Zondo revealed that billions of rand in contracts were irregularly awarded to entities associated with the Gupta family, who are notorious for their close ties with Zuma and for capitalising on state resources.
- Continued Denials
Both Molefe and Gama have publicly denied any wrongdoing throughout the investigation and maintain their innocence regarding separate graft charges related to the procurement of over 1,000 trains.
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