FORMER TRANSNET EXECUTIVES APPEAR IN COURT ON CHARGES OF FRAUD AND CORRUPTION

30 JUNE 2025

FORMER TRANSNET EXECUTIVES APPEAR IN COURT ON CHARGES OF FRAUD AND CORRUPTION

The Palm Ridge Specialised Commercial Crime Court postponed the case against Brian Molefe and his co-accused to 06 October 2025 for further investigations. The four were granted bail of R50 000 each with stringent conditions attached.

Molefe who is the former Group Chief Executive Officer (GCEO) of Transnet is charged together with Anoj Singh a former Group Chief Financial Officer (GCFO), Siyabonga Gama a former Chief Executive Officer (CEO) and Thamsanqa Jiyane who was the Chief Procurement Officer (CPO) in the Transport Freight Rail (TFR) division within Transnet. They are facing 18 charges that include the Contravention of the Public Finance Management Act (PFMA), fraud, corruption and the Contravention of the Companies Act.

These charges relate to Transnet’s strategic plans in 2011 to actively create capacity, giving rise to their Market Demand Strategy (MDS). The focus of the MDS was to expand and modernise the country’s port, rail and pipeline infrastructure over a period of seven years, with its focus being on capturing rail-friendly freight from road to rail.

During the process of acquiring locomotives to expand and modernize the country’s rail infrastructure, the accused allegedly flouted the tender process by irregularly appointing a company that did not qualify, to wit CSR, a Chinese company to provide the 95 Locomotives. Other due processes were not followed so as to advantage CSR and in the end a bid which was costed at a little over R3,2 billion was inflated and allegedly exceeded its contract value by over R231 billion, resulting in a payment of over R3,4 billion.

There were 2 other bids relating to the acquisition of 100 and then 1064 locomotives were procured again with CNR due to the alleged flouting of processes by the accused. The 100 locomotives costed at R3.8 billion as inflated to R4.8 million and the 1064 locomotives costed at R38,1 billion to R54 billion.

The accused all held key positions in Transnet which was a State Owned Entity. It was their duty to perform due diligence and ensure that Transnet got value for its money. They however, are alleged to have enabled and ensured that costs were inflated and that their preferred bidder was unduly advantaged.
This is a state capture matter. During the State Capture Commission hearings the country heard how billions were looted from Transnet. This case depicts that flouting of services and the generation of billions of rands for use not attributed to the rail modernisation project.

The arrest of the accused highlight how persons in positions of trust and power allowed themselves to be part of a corrupt relationship that sought self-enrichment as opposed to the enrichment of the country and its infrastructure.


Enquiries:

Henry Mamothame
IDAC - Spokesperson
082 317 5731