The Investigating Directorate Against Corruption (IDAC) has arrested former Transnet Chief Executive Officers Brian Molefe and Siyabonga Gama for their alleged involvement in fraud, corruption, and money laundering related to a controversial R54 billion locomotive procurement contract.
Both Molefe and Gama surrendered to authorities and are scheduled to appear at the Palm Ridge Magistrate’s Court on Monday.
The charges stem from a 2015 tender involving the purchase of 1,064 locomotives, a contract marred by irregularities and suspected breaches of the Public Finance Management Act. Investigations have revealed questionable payments involving entities linked to the Gupta family, including Regiments Capital and Trillian Asset Management.
Among the suspicious transactions, Trillian received R93.4 million and made an unexplained R305 million in contract escalations. Within three days of receiving funds, Trillian transferred R74 million to Albatime, a company owned by Gupta associate Kuben Moodley, raising serious concerns over the legitimacy of these payments.
Project costs ballooned from an initial R38 billion estimate in 2012 to over R50 billion, highlighting apparent financial mismanagement. A 2018 forensic report accused Molefe of misleading the Transnet board about the requirement to inform the Minister of Public Enterprises, Malusi Gigaba, regarding cost overruns.
The Zondo Commission on State Capture recommended criminal investigations into Molefe, Gama, and then-CFO Anoj Singh for their roles in facilitating the diversion of public funds to the Gupta network.
