About this case study: This narrative explains the nature of corrupt activities relating to high-profile cases, and is produced in the public interest. It relies on the final reports from the Judicial Commission of Inquiry into Allegations of State Capture, Corruption, and Fraud in the Public Sector, including Organs of State (the Zondo Commission), court documents, books, investigative journalism reporting, and other media articles, all in the public domain. The ISS has made all reasonable attempts to report the details accurately. Details for the cases in the Zondo Commission reports are provided up to December 2023. Further updates are in the ‘Recent Case Updates’ section below.
Story Summary
Transnet is South Africa’s state-owned freight transport and logistics company. Billions of rands were diverted from Transnet into Gupta-linked networks between 2009 and 2017, mostly in the form of kickbacks from inflated contracts. This accounts for 72% of all state contracts linked to the Guptas.
The scheme to loot Transnet involved taking over the board and top management of the state-owned enterprise while weakening oversight and internal controls.
The Gupta network received billions of Rands in kickbacks from irregular contracts with inflated values, sometimes via front companies. A substantial portion of the funds spent on defective equipment and kickbacks was financed by state borrowing, including a US$1.5bn loan from the China Development Bank at a punitive interest rate.
InsightISS Analysis
Our key insights on this case
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This account is of corruption at state-owned enterprises facilitated by the destruction and re-purposing of corporate governance rules. This was particularly egregious in procurement, where politicians selected an unaccountable board committee that controlled many high-value tenders.
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Corruption at Transnet took the form of criminal conduct including procurement fraud, bribery, kickbacks, racketeering, violations of the Public Finance Management Act, offences in terms of the Prevention of Organised Crime Act and irregular contracting.
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Unethical conduct included pervasive conflicts of interest and poor corporate governance practices. Various forms of coercion including bullying were probably used to create an organisational culture that facilitated systemic corruption.
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State-owned entities pose a significant corruption risk because they often have monopoly rights that allow for high profits, combined with a close relationship with government and guaranteed finance. This creates opportunities for the extraction of high rents – which can be used to finance political parties or factions in order to sustain their access to opportunities for rent extraction in the long term.
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Lessons for prevention and early intervention
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Story 1The Transnet Board
Zuma, Gigaba and Brown reportedly ensured that board members and executives who would treat the Guptas favourably were appointed. Numerous irregular contracts were then directed to the Gupta network.
2009 |
In 2009, Maria Ramos, then Group Chief Executive Officer (GCEO) of Transnet, resigned. Jacob Zuma was elected President of the Republic of South Africa, and appointed Barbara Hogan as Minister of Public Enterprises.
Zuma allegedly interfered with and worked against Hogan’s efforts to appoint Sipho Maseko as the new GCEO of Transnet. Zuma favoured Siyabonga Gama, the then CEO of Transnet Freight Rail (TFR). Hogan found that the serious nature of misconduct charges facing Gama at the time made him unsuitable for the GCEO position. The Transnet board shared this view, citing not only the corruption allegations against him but also expressing concerns about his judgment and skills gaps relative to the position’s requirements. In a second selection process, the board recommended Sipho Maseko for the GCEO position, citing his high capability, experience and admirable managerial skills. In June 2009, Zuma expressed his unwillingness to accept Maseko, insisting on Gama’s appointment. Hogan informed Zuma that Gama was never shortlisted as the second preferred candidate after Pravin Gordhan. In fact, the board had initiated an extended search after Gordhan’s withdrawal and subsequent appointment as the Minister of Finance because it lacked confidence that the other candidates, including Gama, were suitable for the GCEO position. Chris Wells was appointed acting GCEO. The preference for Gama garnered support from two Cabinet ministers, Jeff Radebe and General Nyanda, both of whom owned a company implicated in procurement irregularities that had led to Gama’s disciplinary inquiry. African National Congress (ANC) Secretary-General, Gwede Mantashe also backed Gama. |
2010 |
Gama’s disciplinary inquiry took place from 13 January to 25 February, chaired by Advocate Antrobus SC. Following the inquiry, Gama was found guilty of three charges, including tender irregularities. On 29 June, Gama was dismissed as CEO of TFR.
In October, Hogan was removed as the Minister of Public Enterprises by Zuma and replaced by Malusi Gigaba. Gigaba was reportedly an acknowledged associate of the Gupta enterprise with regular and frequent contact with Gupta family members. He allegedly had a particularly close friendship with Ajay Gupta, visiting him at Sahara Computers and making regular visits to the Gupta Saxonwold compound during his tenure as Minister of Public Enterprises. To manage the relationship and avoid confusion between friendship and business, his special advisor, Siyabonga Mahlangu, allegedly acted as a buffer between Gigaba and Ajay Gupta. Gigaba allowed Mahlangu to accompany Zuma’s son, Duduzane Zuma, to a Gupta wedding in India, with the expenses covered by Sahara Computers. Mahlangu continued to receive his salary during his absence. Gigaba attended the infamous Gupta wedding at Sun City, and the Guptas were invited to his own wedding. Gigaba immediately restructured the Transnet board with his preferred appointees and initiated the process to appoint Brian Molefe as GCEO. Vijay Raman, a rail expert, was replaced by Iqbal Sharma. Sharma was a mid-level official at the Department of Trade and Industry and a business associate of Salim Essa, a key figure in the Gupta enterprise. A few days after becoming the board’s chairperson, Mafika Mkwanazi was also appointed acting GCEO by Gigaba, following the resignation of Chris Wells as acting GCEO. |
2011 |
On 16 February, despite not being the highest-scoring candidate out of three preferred candidates, Brian Molefe was appointed GCEO of Transnet based on Gigaba’s recommendation. Sharma also recommended Molefe for the appointment.
Molefe was also reportedly an associate of the Guptas and regularly visited the Gupta Saxonwold compound. His appointment was accurately predicted by the Gupta-owned newspaper, the New Age, which he allegedly supported financially under the disguise of advertising and marketing events. A week after Molefe’s appointment, Gama was reinstated as CEO of TFR following a meeting between Gigaba and Mkwanazi, and a subsequent request to the new board to review the dismissal. This reinstatement allegedly occurred through a questionable settlement agreement in which Gama was paid R17m to cover employment benefits due to him from 30 June 2010 to 23 February 2011 as per his employment contract (totalling R13m) as well as legal costs. The process involved in reaching the settlement agreement, the decision to reinstate, the terms of the settlement agreement and the payment of costs falling outside its terms were considered indefensible by the Zondo Commission. Siyabulela Mapoma, General Manager of Group Legal Services, testified at the Zondo Commission that Mkwanazi informed him that he had received instructions to reinstate Gama. There is also evidence that Mahlangu, Gigaba’s special advisor, exerted pressure on Mapoma to expedite the settlement, stating that Zuma wanted it concluded swiftly. |
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Jacob ZumaPresident Alleged misconduct: Interfered with and worked against Hogan’s efforts to appoint a new GCEO for Transnet. Reportedly favoured the appointment of Gama as GCEO, despite him facing misconduct charges, and delayed new appointments until Gama’s disciplinary proceedings were concluded. Called for the removal of Hogan when she opposed Gama’s appointment. Status of accountabilityNo criminal charges have been brought against him relating to Transnet. |
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Siyabonga GamaTFR CEO Alleged misconduct: Faced serious misconduct charges as CEO of TFR. Status of accountabilityDismissed as CEO of TFR in June 2010 but reinstated in February 2011 after a meeting between Gigaba and Mkwanazi. |
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Brian MolefeTransnet GCEO Alleged misconduct: Identified as an associate of the Gupta family and allegedly visited their Saxonwold compound regularly. After his appointment as GCEO, he reportedly oversaw substantial procurements at Transnet that benefited the Gupta network. Status of accountabilityThe Zondo Commission recommended that he be investigated for corruption and racketeering. |
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Malusi GigabaMinister of Public Enterprises Alleged misconduct: Reportedly restructured the Transnet board with his preferred appointees, recommending the appointment of Molefe as GCEO in February 2011 despite Molefe not being the most qualified candidate. The Guptas allegedly contributed to the costs of Gigaba’s wedding, funded his honeymoon to Dubai in 2014/2015, provided cash for renovations to his father’s home in KwaZulu-Natal, contributed to settling Gigaba’s sister’s debts, paid for his children’s school fees and gave him two watches during trips to Dubai. Status of accountabilityThe Zondo Commission recommended he be investigated for corruption and racketeering, with a focus on alleged cash payments made to him during visits to the Gupta residence from 2010 to 2018. No criminal charges have been brought against him relating to Transnet. |
Story 2The GNS/Abalozi Contract
Background |
In 2007, an initially open tender process for security services at Transnet was halted and substituted with a tender confinement – this refers to a tender process that is not open to the market, usually in cases justified by urgency, standardisation or highly specialised goods. The confinement was awarded to GNS – also known as Abalozi Risk Advisory Services. GNS was owned by General Siphiwe Nyanda and had reportedly been recommended based on its expertise, proven track record and national footprint in providing specialised security solutions.
However, awarding the contract to GNS was allegedly marked by substantial misrepresentations and irregularities. GNS reportedly had no staff, rendering it incapable of deploying its own personnel to carry out the work for which it invoiced Transnet monthly. Transnet paid GNS a total of R95.5m for security services over a period of approximately two years and two months. In early 2010, Transnet terminated the GNS contract. In October 2010, it issued a summons against GNS to recover R95.6m. Following Gama’s reinstatement as TFR’s CEO in early 2011, a process was begun to withdraw this litigation. |
2013 |
During a Risk Committee meeting on 5 February, TFR management, led by Gama, advised the committee to reconsider the decision to pursue litigation against GNS.
On 18 March, Molefe informed Christopher Todd (the attorney handling the litigation on behalf of Transnet) that the litigation was sensitive and that an unidentified person (assumed to be General Nyanda) had been questioning Transnet’s persistence in the litigation against GNS/Abalozi. Todd and Advocate Barrie SC realised that proceeding with the litigation would be challenging without any witnesses willing to support Transnet’s interests. Ndiphiwe Silinga, Transnet’s General Manager of Legal Services, had already sent a memorandum to Molefe recommending rescinding GNS/Abalozi’s blacklisting. The memo stated that new information indicated GNS/Abalozi had submitted reports showing the work was completed and that TFR, under Gama’s leadership, had no complaints. On 10 April, Molefe accepted the recommendation and rescinded the blacklisting, citing procedural and substantive unfairness in the decision. |
2014 |
During a Risk Committee meeting on 28 May, the team from Harris Nupen Ralebats (HNR) Attorneys, headed by Charles Nupen, presented the findings from their investigation into whether Transnet received value for money from the services rendered by GNS/Abalozi to TFR in terms of the contract. Despite numerous limitations in the investigation, HNR found that “some value for money had been received”. Based on the HNR report, the Risk Committee resolved not to pursue the litigation against GNS/Abalozi, a decision that was later noted by the board.
Transnet engaged in negotiations with GNS/Abalozi, resulting in a settlement agreement where both parties agreed to resolve all disputes and withdraw the action and counterclaim. As part of the agreement, Transnet committed to paying the costs of GNS/Abalozi, its directors and “co-founders” on a “punitive” scale. This was done without consulting Bowman Gilfillan, the attorneys representing Transnet in the litigation. Molefe signed the settlement deed on behalf of Transnet on 4 August. |
2015 |
In a memorandum dated 30 January, Silinga requested Anoj Singh, the Group Chief Financial Officer (GCFO) of Transnet, to authorise a payment of R20m to GNS/Abalozi as a “full and final settlement of the legal disputes between Transnet and GNS/Abalozi.” The memorandum did not provide any explanation for Transnet’s decision to enter into this agreement. |
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Siyabonga GamaTFR CEO Alleged misconduct: Led TFR management in advising the Risk Committee to reconsider the litigation against GNS/Abalozi. Status of accountabilityNo criminal charges have been brought against him relating to the GNS contract. |
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Brian MolefeTransnet GCEO Alleged misconduct: Accepted the recommendation to rescind GNS/Abalozi’s blacklisting and signed the punitive settlement deed on behalf of Transnet. Status of accountabilityNo criminal charges have been brought against him relating to the GNS contract. |
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Anoj SinghTransnet GCFO Alleged misconduct: Authorised the payment of R20m to GNS/Abalozi. Status of accountabilityNo criminal charges have been brought against him relating to the GNS contract. |
Story 3The Procurement of Locomotives
| Story 3a: The procurement of 95 locomotives | |
2011 |
Shortly after Molefe’s appointment as Transnet GCEO and Gama’s reinstatement as TFR CEO in April, the Transnet board approved the Locomotive Fleet Modernisation Plan, pending affordability confirmation by the Board Acquisitions and Disposals Committee (BADC).
Transnet’s relationship with China South Rail (CSR) Zhuzhou Electric Locomotive Company Ltd began with a process to procure 95 locomotives. |
2012 |
On 14 April, CSR (Hong Kong) and Century General Trading FZE (CGT) entered into an exclusive agency or consultancy agreement for the “95 Locomotive Project”. Essa, utilising two shell companies controlled by him, Regiments Asia (Pty) Ltd and Tequesta, entered into multiple Business Development Service Agreements (BDSAs). These agreements allegedly served as kickback arrangements with several Hong Kong-based companies affiliated with successful bidders in the locomotive procurement, namely CSR and China North Rail Corporation Ltd (CNR), both Chinese entities. These two companies merged in 2015 to form the China Railway Rolling Stock Corporation (CRRC). |
2015 |
On 10 February, CSR and Regiments Asia finalised a BDSA pertaining to the “95 Locomotive Project”. This agreement signified that Regiments Asia effectively replaced CGT under the 2012 consultancy agreement. Consequently, Regiments Asia was entitled to receive the same payment that CGT had been allocated for the “95 Locomotive Project”, amounting to 20% (R523.32m) of the total value of the contract.
Evidence led at the Zondo Commission concerning the procurement of the 95 locomotives indicated the presence of the following irregularities:
These irregularities consistently favoured CSR and were not in Transnet’s best interests. The relationship between Transnet and CSR persisted, allegedly resulting in further misconduct in subsequent bids and contracts for the acquisition of additional locomotives. The connection between the events that transpired in acquiring the first 95 locomotives and subsequent acquisitions from CSR indicated an enterprise involved in a pattern of racketeering activities. |
| Story 3b: The procurement of 100 locomotives | |
2013 |
In October 2013, the Transnet board approved the business case for the second major locomotive transaction. This involved procuring 100 additional locomotives for a coal export line that stretched from the Ermelo coalfields to Richards Bay. The aim was to expedite the acquisition in order to free up older locomotives from the coal line for deployment in the General Freight Business (GFB).
Based on urgency and standardisation, Transnet initially intended to acquire the locomotives through confinement with Mitsui, which had recently supplied similar locomotives. However, according to the evidence presented at the Zondo Commission, Molefe, Singh, Sharma and Garry Pita (Transnet CFO) were all involved in altering the confinement memorandum to award the contract to CSR. This change undermined the rationale of urgency and standardisation as CSR had not previously produced similar locomotives. |
2014 |
The alleged misconduct related to the procurement of the 100 locomotives includes:
CSR (or CRRC) allegedly paid a kickback of R925m on this contract to one of Essa’s companies, JJ Trading FZE. |
| Story 3c: The procurement of 1,064 locomotives | |
2011 |
The business case for procuring 1 064 locomotives was formulated at TFR from 2011 to 2012 by a team coordinated by Francis Callard, an electrical engineer.
The acquisition was part of the Market Demand Strategy plan aimed at increasing freight volumes from 208m tonnes to 350m tonnes per annum, and in particular boosting GFB from 82.6m tonnes to 170m tonnes by 2019. The business case indicated that extending the life of the aging locomotive fleet was no longer economically feasible or technologically practical. It recommended a programmatic procurement of new locomotives, anticipating benefits for Transnet Engineering through localisation, technology transfers, manufacturing skills development and job creation. The stated acquisition cost for the 1 064 locomotives in the business case was R38.6bn, with two-thirds of the cost to be financed using cash generated by operations and around R13bn to be raised externally. The delivery of the locomotives was scheduled to span seven years. |
2012 |
Between May 2012 and April 2013, the business case for procuring the 1 064 locomotives was overseen by Singh and Mohammed Mahomedy (General Manager of Capital Assurance and Integration).
On 23 July 2012, Transnet issued requests for proposals (RFPs). In March 2013, Transnet appointed McKinsey, followed by transaction advisors Regiments and Trillian, to evaluate the business case and assist in the acquisition. Technical input was provided by Callard and others from TFR, as well as Niven Pillay from Regiments. Singh played a crucial oversight role during this period and Gama contributed human resources from TFR. On 25 April 2013, the board approved the business case, almost nine months after issuing the RFPs. On 3 August 2013, the Minister of Public Enterprises granted approval for the acquisition. After issuing RFPs, the procurement process entailed the submission of bids, the tender evaluation stage, the Best and Final Offer (BAFO) stage, post-tender negotiations and, ultimately, the conclusion of the Locomotive Supply Agreements (LSAs). The tender evaluation and BAFO stages occurred from May 2013 to January 2014. |
2014 |
On 24 January, the Transnet board and BADC decided to split the procurement into four contracts and appointed four Original Equipment Manufacturers (OEMs) as preferred bidders.
Post-tender negotiations occurred in February. During these negotiations, McKinsey reportedly ceded its rights under the contract for the provision of advisory services to Regiments. It was communicated to Transnet that Regiments had performed all the work related to the mandate. Against the objections of Yusuf Laher, who was on the financial support team, Singh and Thamsanqa Jiyane (Chief Procurement Officer at TFR) reportedly made an improper agreement to incorporate batch pricing amounting to R2.7bn into the agreed price. This escalated the procurement cost significantly. The negotiation team, led by Singh and Eric Wood of Regiments, agreed to excessive advance payments, especially favouring CSR and CNR. These decisions had a negative impact on Transnet’s future cash flow. The negotiation team also agreed to contract terms that contradicted the local content requirement specified in the RFPs, which should have resulted in the disqualification of some bidders at that stage. The LSAs were finalised on 17 March at an increased price of R54.5bn, which was R15.9bn higher than the Estimated Total Cost (ETC) stipulated in the business case. The board accepted the recommendation of Molefe and Singh to raise the ETC from R38.6bn to R54.5bn on 28 May, based on the premise that the original ETC in the business case had excluded forex and escalation costs. This premise was, however, inaccurate and allegedly a misrepresentation by Molefe and Singh – the ETC had in fact incorporated forex and escalation costs to the tune of R5.9bn. Singh repeated this misrepresentation in correspondence to the Minister of Public Enterprises on 31 March. Singh and Molefe failed to secure the necessary approval and authorisation from the Minister for the price increase, contravening section 54 of the Public Finance Management Act (PFMA), thereby casting doubt on the legality of the LSA. In their memorandum to the board dated 23 May, Molefe and Singh reportedly misrepresented the profitability of the procurement of the 1 064 locomotives to justify the price increase. ‘The original business case provided for a positive net present value (NPV) of R2.7bn based on the initial ETC using a hurdle rate of 18.56%.’ Although the price increase resulted in a negative NPV, Molefe and Singh informed the board that the NPV remained positive by using a changed hurdle rate of 15.2%. Singh had changed the rate from 18.56% to 16.24% on 20 May but, instead of using that reduced rate, he used an even lower rate of 15.2% in his submission to the board. The Zondo Commission noted that there are reasonable grounds to believe that Singh used this lower hurdle rate to ensure a positive NPV when there were doubts about the overall profitability of the project. The R15.9bn increase in ETC included amounts totalling R9.124bn that constituted unjustifiable expenditure associated with inflated provisions for backward and forward forex and escalation costs, batch pricing and an excessive provision for contingencies. Evidence from the Zondo Commission suggests that Regiments, under the leadership of Wood, played a significant role in finalising and agreeing to these forex and escalation costs during the post-tender negotiations. In their memorandum to the board justifying the cost increase, Molefe and Singh stated that the escalations had been verified by Regiments ‘using their intellectual property methodology and techniques.’ CSR reportedly paid a kickback of R3.81bn in connection with the 359 electric locomotives it was awarded as part of the 1 064 locomotive transaction. A significant portion (85%) of this kickback was allegedly laundered into companies associated with the Gupta enterprise. According to the Zondo Commission, the unjustifiable expenditure of R9.124bn, which increased the price paid to CSR, likely facilitated CSR’s ability to make the kickback payment. This kickback was executed through a BDSA concluded in May 2015, with Essa representing Tequesta and CSR (Hong Kong). It was also made in accordance with an earlier agreement between CSR Zhuzhou Electric Locomotive Co Ltd and JJ Trading FZE. Just before finalising the LSA for the 1 064 locomotives, a decision was made to relocate the manufacturing and assembly of CNR and Bombardier locomotives in Durban. The initial estimated cost of relocating CNR was R9.8m. However, Transnet eventually agreed to pay approximately R647m to CNR and its local South African Consortium (CNRRSSA) and approximately R618m to Bombardier, totalling R1.261bn, of which R617.6 m was actually paid. The wrongdoing in relation to the 1 064 locomotive procurement included, among other things:
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Siyabonga GamaTFR CEO Alleged misconduct: Presented misleading information and omitted material information from the Transnet board in January 2014, thereby ensuring approval for the acquisition of a further 100 locomotives from CSR through confinement. Status of accountabilityArrested by the Hawks and the Investigating Directorate in May 2022 on charges of fraud, corruption, money laundering and contravening the PFMA. On 3 August 2023, Gama was granted bail of R50 000 by the Palm Ridge Specialised Commercial Crimes Court. On 25 March 2024 the matter appeared at the High Court in Johannesburg for the first time and was postponed to 10 May 2024 for the accused to file requests for further particulars and for the state to indicate how long it would need to respond to the requests. |
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Brian MolefeTransnet GCEO Alleged misconduct: Approved various irregularities in the locomotive procurement transactions, favoured specific bidders and provided support for questionable financial arrangements. Status of accountabilityCharged in August 2022 with contravening the PFMA, fraud, corruption and money laundering in connection with the procurement of 1 064 locomotives worth over R54bn. Released on R50 000 bail. On 25 March 2024 the matter appeared at the High Court in Johannesburg and was postponed to 10 May 2024 for the accused to file requests for further particulars and for the state to indicate how long it would need to respond to the requests. |
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Anoj SinghTransnet GCFO Alleged misconduct: Played a role in misrepresenting facts to justify the R15.9bn price increase for the 1 064 locomotive procurement. Reportedly involved in misrepresenting financial information and approving contracts with irregularities. Status of accountabilityCharged in August 2022 with contravening the PFMA, fraud, corruption and money laundering in connection with the procurement of 1064 locomotives worth over R54bn. Released on R50 000 bail. On 25 March 2024 the matter appeared at the High Court in Johannesburg and was postponed to 10 May 2024 for the accused to file requests for further particulars and for the state to indicate how long it would need to respond to the requests. |
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Iqbal SharmaDepartment of Trade and Industry official and Essa associate Alleged misconduct: Involved in changing the contract to award it to CSR, undermining the original rationale. Gained personal financial stakes in several companies with which Transnet had significant transactions but neglected to disclose this personal interest to the board. Status of accountabilityNo criminal charges have been brought against him relating to Transnet. |
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Salim EssaGupta associate Alleged misconduct: Orchestrated substantial kickbacks through BDSAs in Transnet’s locomotive procurement contracts. Utilised shell companies to receive kickbacks from successful bidders, including CSR and CNR. Kickbacks were linked to irregular and corrupt procurement processes. Status of accountabilityThe Zondo Commission recommended he be investigated for obtaining kickbacks amounting to at least R7.34bn from Chinese locomotive manufacturers. No criminal charges have been brought against him relating to Transnet. |
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Garry PitaTransnet CFO Alleged misconduct: Involved in changing the contract to award it to CSR, undermining the original rationale. Status of accountabilityCharged with contravening the PFMA, fraud, corruption and money laundering. On 25 March 2024 the matter appeared at the High Court in Johannesburg and was postponed to 10 May 2024 for the accused to file requests for further particulars and for the state to indicate how long it would need to respond to the requests. |
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Eric WoodRegiments director Alleged misconduct: Involved in negotiations leading to irregularities and agreed to excessive advance payments. Status of accountabilityCharged with contravening the PFMA, fraud, corruption and money laundering. On 25 March 2024 the matter appeared at the High Court in Johannesburg and was postponed to 10 May 2024 for the accused to file requests for further particulars and for the state to indicate how long it would need to respond to the requests. |
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Thamsanqa JiyaneAlleged misconduct: Involved in facilitating the improper agreement to incorporate batch pricing. Status of accountabilityThe Zondo Commission recommended that he be investigated for fraud, corruption and racketeering linked to Transnet’s procurement of 1 064 freight locomotives. No criminal charges have been brought against him relating to Transnet. |
Story 4Regiments
2014 |
On 23 January, Singh entered into a contract with Regiments regarding the 1 064 locomotive procurement, reportedly without appropriate authority. When Singh concluded a third addendum to the Letter of Intent (LOI) with McKinsey on 4 February, McKinsey responded by ceding its rights to Regiments, reportedly through an invalid cession.
Regiments received payments totalling R36.77m between February and April 2014, based on the invalid third amendment to the LOI concluded in February 2014. An extra payment of R79.23m, which had no legal basis, was allegedly made by Transnet to Regiments on 30 April 2014. Between 2014 and 2015, McKinsey and Regiments were awarded contracts valued at R2.2bn through confinement rather than open public tender. Half of the revenue received by Regiments under these contracts was directed to Homix, a company allegedly associated with the Gupta family, in accordance with an agreement involving Essa and Kuben Moodley, another Gupta associate. Evidence indicates that McKinsey and Regiments had irregular access to the confinement memoranda before submitting their bids for these contracts. Molefe approved four of these confinements within a four-day period (31 March – 3 April 2014). These contracts appointed Homix and Albatime (a Gupta-linked front company) as Supplier Development Partners (SDPs). In July, and before the conclusion of the tender process, fee payments of an unknown amount were irregularly made to McKinsey and Regiments under these contracts. Correspondence dated 13 June confirmed that provision for fee payments to Homix and Albatime exceeding R100m were to be made under these contracts. David Fine, a senior partner at McKinsey, stated to Parliament that neither Homix nor Albatime were involved in providing any services on any project in which McKinsey was engaged. In April, shortly after finalising the LSAs for the 1 064 locomotives, negotiations for financing the procurement from Chinese companies began with the China Development Bank (CDB). Regiments took the lead role in these negotiations, side-lining Transnet’s Group Treasurer, Mathane Makgatho, and the treasury team. Makgatho unsuccessfully raised concerns about the Treasury’s marginalisation and the unsatisfactory proposed terms of the CDB facility with Molefe and Singh. Fearing for her safety and well-being, Makgatho resigned from Transnet in November. She was replaced by Phetolo Ramosebudi, former Treasurer at both Airports Company South Africa and South African Airways, who allegedly had links with the Gupta enterprise. In August, Singh, assisted by Regiments, presented misleading information to the board, committing Transnet to a loan of US$1.5bn from CDB on relatively unfavourable terms. |
2015 |
Ramosebudi, now Transnet’s Group Treasurer, sought approval for a substantial “success fee” payment to Regiments just a week after Gama became acting GCEO. The fee of R189.24m related to the US$1.5bn facility with CDB. The proposal received support from Gama, Singh and Pita. It was approved by the BADC on 29 April and Gama on 16 July. One day before the conclusion of the CDB loan on 4 June, Regiments submitted an invoice for R189.24m. Evidence reveals that the work performed was already covered by an earlier agreed fee of R15m. Experts testified that the fee of R189.24m was significantly higher than the market norm for the work reportedly performed by Regiments, and was likely inflated by between R90m and R140m. On 11 June, the fee was paid to Regiments. Records indicate that R147.6m of this fee was paid to Albatime, a Gupta-linked front company, of which R122m was further laundered to Sahara Computers, another company in the Gupta enterprise.
Regiments also advised Transnet to secure a ZAR R12bn club loan (a loan involving more than one lender) in relation to the 1 064 locomotives. Regiments initially took over from JP Morgan as the lead arranger for this loan. However, when Wood transitioned from Regiments to Trillian Capital (Pty) Ltd, a company he helped establish and in which Essa held a controlling stake, the situation changed. On 22 September, Gama submitted a memorandum to the BADC recommending that they approve the appointment of Trillian to replace JP Morgan as the lead arranger for the club loan. Ramosebudi, Pita and Edward Thomas (Group Supply Chain Officer at Transnet) supported the proposal to appoint Trillian. Although the initial plan was to pay Regiments a success fee of R50.2m, Trillian ultimately received a success fee of R93.48m. Thomas questioned the appropriateness of the proposal in an email to Ramosebudi and Pita, arguing that previous payments to Regiments had already covered the services supposedly provided by Trillian. He also expressed scepticism about the newly incorporated Trillian’s ability to underwrite the loan, given that it was not a bank with substantial assets but rather a company recently conceptualised by Wood. On 14 September, a few days before Gama submitted the proposal to the BADC, Ramosebudi reportedly forwarded an email to Wood with an attached order for a Range Rover Sport valued at R1.23m from Land Rover Waterford, a dealership partly owned by Wood’s partner, Litha Nyhonyha. This action indicated that Ramosebudi hoped Wood would ‘do something for him’ in exchange for supporting Trillian’s appointment. On 18 November, Gama and Pita signed a mandate with Trillian’s Daniel Roy appointing Trillian as the lead arranger for the R12bn club loan. Trillian immediately issued an invoice for R93.48m, and a payment advice was signed by Gama and Pita the next day. The club loan was concluded on 23 November and Ramosebudi requested approval for the invoice from Gama and Singh, which they provided in early December. Trillian received the payment on 4 December, just 16 days after the mandate, and transferred R74.8m to Albatime four days later. Evidence given at the Zondo Commission indicated that Trillian did not perform any actual services for the loan, as the lead arranging work had already been done by JP Morgan and Regiments. Moreover, the short timeframe between the mandate and loan conclusion makes it practically impossible for Trillian to have completed the necessary work, which would have required months of preparation. |
2016 |
Gama allegedly met with Essa at a Dubai hotel shortly after approving the questionable R93.48m payment to Trillian. Evidence suggests that Gama’s hotel bill was covered or intended to be covered by Sahara Computers or Essa.
On 24 February, a few weeks later, Transnet board chairperson Mabaso recommended Gama for the GCEO position without a proper recruitment process, and despite the board having found him unsuitable twice before. On 12 March, then Minister of Public Enterprises Lynne Brown, who had been appointed by President Zuma, named Gama GCEO, replacing Molefe who had left to become Eskom’s CEO. On the same day Gama approved the questionable Trillian payment, just 10 days after the floating interest rate for the 12bn club loan was secured, Ramosebudi proposed interest rate hedging to Pita, the acting GCFO. He recommended fixing the rate and having Regiments execute the hedges with approved counterparties. Gama approved this, and Regiments executed two tranches of interest rate swaps on the loan. R4.5bn was swapped at 11.83% fixed for 15 years on 4 December. On 7 March 2016, R7.5bn was swapped at 12.27% fixed for 15 years. Transnet’s interest rate swap deals executed by Regiments caused substantial realised and unrealised losses totalling R1.83bn. According to the Zondo Commission, the swaps were highly imprudent and should never have been made. |
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Salim EssaGupta associate Alleged misconduct: Utilised shell companies to launder money from confinement tenders between Transnet and McKinsey/Regiments. Paid for Gama’s hotel bill in Dubai, shortly after Gama approved the questionable R93.48m payment to Trillian. Status of accountabilityNo criminal charges have been brought against him relating to Transnet. |
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Brian MolefeTransnet GCEO Alleged misconduct: Approved irregular confinements between Transnet and McKinsey/Regiments – the contracts appointed Homix and Albatime (Gupta-linked front companies) as Supplier Development Partners. Status of accountabilityThe Zondo Commission recommended that he be investigated for corruption and racketeering. No criminal charges have been brought against him in relation to dealings between Transnet and Regiments/Trillian. |
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Anoj SinghTransnet GCFO Alleged misconduct: Added a third, invalid addendum to the LOI with McKinsey, resulting in McKinsey ceding its rights to Regiments. Assisted by Regiments, presented misleading information to the board that committed Transnet to a loan of US$1.5bn from CDB on unfavourable terms. Status of accountabilityNo criminal charges have been brought against him in relation to dealings between Transnet and Regiments/Trillian. |
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Phetolo RamosebudiTransnet Group Treasurer Alleged misconduct: Reportedly sought approval for a substantial “success fee” payment to Regiments. Supported replacing JP Morgan with Trillian as the lead arranger for the R12bn club loan and allegedly forwarded an order for a Range Rover Sport to Wood valued at R1.23m in exchange for this support. Sought approval for payments to Trillian despite no actual services having been provided. Status of accountabilityNo criminal charges have been brought against him in relation to dealings between Transnet and Regiments/Trillian. |
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Siyabonga GamaTransnet acting GCEO Alleged misconduct: Supported the payment of a substantial “success fee” payment to Regiments. Recommended to the BADC that Trillian replace JP Morgan as the lead arranger for the R12bn club loan and signed the subsequent mandate with Trillian. Approved payments to Trillian despite no actual services having been provided and met with Essa at a Dubai hotel shortly after – Essa or Sahara Computers allegedly paid for his hotel bill. Approved the interest rate swap deals that cost Transnet billions. Status of accountabilityNo criminal charges have been brought against him in relation to dealings between Transnet and Regiments/Trillian. |
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Garry PitaTransnet CFO Alleged misconduct: Supported the payment of a substantial “success fee” payment to Regiments. Supported replacing JP Morgan with Trillian as the lead arranger for the R12bn club and, with Gama, signed the mandate appointing Trillian. Status of accountabilityNo criminal charges have been brought against him in relation to dealings between Transnet and Regiments/Trillian. |
Story 5Transnet’s IT Tenders
Corruption took place relating to Transnet’s IT and network contracts between 2014 and 2017.
2014 – 2015 |
Evidence shows that while Molefe was away, the acting GCEO awarded an IT tender to Neotel. On his return, Molefe awarded it to T-Systems. T-Systems had bid jointly with a company called BBi, where Essa was a Gupta-appointed director. T-Systems also paid Gupta companies via its SDP Sechaba Computer Systems. Sechaba Computer Systems paid Essa’s wife’s firm a R228 000 monthly retainer from 2015 to 2016.
Molefe’s decision to award Transnet’s IT network tender to T-Systems instead of Neotel was subsequently reversed, with the tender going back to Neotel. This happened after Transnet received a negative audit opinion and the legal advice that Molefe’s decision was irregular. Evidence shows that in 2014 and 2015, Neotel made two corrupt payments totalling around R75m to Homix, a Gupta money laundering company. The first payment of R34.5m was for acquiring equipment from Cisco for Transnet’s IT network. The second payment of R41m was supposedly for services rendered by Homix over just two days in concluding a Master Services Agreement between Neotel and Transnet for network services. Neotel also agreed to pay Homix R25m more for two-day’s worth of services related to an asset buy back agreement with Transnet. The amounts paid by Neotel to Homix were then allegedly laundered onwards to other Gupta entities in violation of exchange control regulations. |
2017 |
In 2017, another attempt was made to improperly award a Transnet tender to T-Systems over the highest-scoring bidder Gijima. The BADC, chaired by Stanley Shane and seemingly supported by Gama, rejected Gijima’s bid on questionable grounds despite it being the highest-scoring bid. Instead, they awarded the tender to T-Systems, the lowest scorer with a bid that was R1bn more expensive than Gijima’s. This decision favouring T-Systems was eventually reversed and the tender was awarded to Gijima.
The Zondo Commission found that the conduct of certain BADC members, such as Shane and Zainul Nagdee, who allegedly also had links to the Gupta enterprise, indicated a clear intent to inappropriately favour T-Systems. Their actions likely violated Section 50 of the PFMA and demonstrated ties to the Gupta racketeering syndicate. |
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Brian MolefeTransnet GCEO Alleged misconduct: Awarded an IT tender to T-Systems that was found to be irregular. Status of accountabilityNo criminal charges have been brought against him in relation to irregular IT contracts. |
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Stanley ShaneTransnet BADC chairperson Alleged misconduct: Inappropriately favoured T-Systems in tender bids. Status of accountabilityNo criminal charges have been brought against him in relation to irregular IT contracts. |
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Zainul NagdeeTransnet BADC member Alleged misconduct: Inappropriately favoured T-Systems in tender bids. Status of accountabilityNo criminal charges have been brought against him in relation to irregular IT contracts. |
RecentCase Updates
Latest developments from news sources
- 5 March 2026: Transnet suspended nine employees following an internal anti-corruption investigation that uncovered ‘dozens’ of transactions overcharged by 50 to 1000 percent in the 2024/2025 financial year. Employees have been accused of colluding with suppliers, with three facing disciplinary hearings. Transnet has referred the matter to law enforcement and begun blacklisting implicated suppliers.
- 19 February 2026: The State Attorney has rejected Former Minister of Public Enterprises Malusi Gigaba’s application to have the state cover his legal costs in the Transnet corruption case. Gigaba has been charged with corruption in connection with Transnet’s R54 billion locomotive tender case.
- 25 November 2025: Nedbank and Transnet have reached a settlement over interest-rate swaps that occurred between December 2015 and March 2016, following advice from Gupta-linked advisory firm Regiments Capital. The swaps were cited in the Zondo Commission of Inquiry report as part of a larger scheme to siphon public funds from Transnet into Gupta-linked entities. In the interest of concluding the ongoing litigation, Nedbank has agreed to pay Transnet R600 million without an admission of liability, maintaining “there is no evidence of any Nedbank staff dishonesty, corruption, or collusion in the matter.”
- 18 November 2025: Former public enterprises minister, Malusi Gigaba, has been charged with corruption linked to Transnet’s R54 billion locomotive tender case. The state alleges that Gigaba accepted undisclosed payments from the Gupta family in connection with the locomotive contracts concluded during his tenure. Gigaba maintains his innocence and has stepped aside from his ANC roles, indicating that he will contest the allegations in court.
- 23 October 2025: Katiso “KT” Molefe, who was released on R100 000 bail in June 2025 related to the assassination of Transnet whistleblower Armand Swart, has been granted bail of R400 000 by the Gauteng High Court for his alleged role in the 2022 murders of DJ Sumbody (Oupa John Sefoka) and his two bodyguards, Sibusiso Mokoena and Sandile Myeza. Molefe faces five murder charges in total across various cases. A ‘Witness A’ (a protected witness), testified before the Madlanga Commission that an informer claimed Molefe arranged for a R2.5 million bribe to secure his bail; however, the witness failed to produce evidence in support of this claim. Acting Judge President, Aubrey Ledwaba, has denied the receipt of a bribe in connection with Molefe’s bail.
- 22 October 2025: Witness B, an organised crime detective under protection, informed the Madlanga Commission that Lucky Molefe, KT Molefe’s nephew and a Transnet buyer, has been on the run since December 2024 and is wanted in connection with Armand Swart’s murder. Prior to Swart’s assassination, Lucky Molefe had been pressured by Transnet investigators to hand over documents related to tender fraud involving the SK Group, following a whistleblower report that flagged irregularities. The investigation revealed that the money paid to the SK Group was transferred to the account of KT Molefe’s son, Thapelo Molefe.
- 21 October 2025: 21 October 2025: Witness A, an organised crime detective under protection, testified at the Madlanga Commission that high-level interference, involving Hawks officials and a Gauteng Traffic Police helicopter, attempted to obstruct the arrest of KT Molefe at his Sandhurst home in December 2024. During the raid, officers found sensitive documents, including Transnet tender bids and files connected to SK Group, the company involved in the inflated contracts. The witness stated that Major-General Richard Shibiri, head of the SAPS Organised Crime Unit, warned the investigators that they were dealing with “dangerous people” and hinted at a bribe to free arrested suspects, including former police officer Michael Pule Tau.
- 20 October 2025: Witness A, an organised crime detective under protection, accused businessman Katiso “KT” Molefe of masterminding the assassination of Armand Swart, a suspected Transnet whistleblower. Swart was killed in April 2024 after his company, Q Tech, flagged a 4 500% markup on a Transnet Freight Rail tender. Witness B claims Swart’s assassination was a case of mistaken identity, with Swart having no involvement in the whistleblower report. Evidence, including phone records, has linked KT Molefe to police detective Michael Pule Tau, who was arrested for carrying out the assassination. A ballistic report on the murder weapons was reportedly tampered with by Gauteng police, omitting crucial information.
- 6 October 2025: The case against former Transnet executives Brian Molefe, Anoj Singh, Siyabonga Gama, and Thamsanqa Jiyane has been postponed to 18 November 2025 to allow the NPA to finalise the indictment and transfer the case to the High Court. The four executives face 17 charges, including contraventions of the Public Finance Management Act (PFMA), fraud, corruption, and breaches of the Companies Act. All remain out on R50 000 bail each.
- 1 October 2025: In response to a written parliamentary question, Justice Minister Mmamoloko Kubayi reported significant progress in the Transnet state capture cases, with the Asset Forfeiture Unit (AFU) having secured a restraint order valued at over R1,08 bn earlier this year. The Minister confirmed that the Transnet locomotives case, involving former CEOs Brian Molefe and Siyabonga Gama, is progressing and that this specific case has been referred to the AFU for further action.
- 30 July 2025: As of May 2025, the Special Investigating Unit (SIU) has recovered R743.6 million in Transnet-related investigations.
- 22 July 2025: An application for pardons by lawyers representing Ronica Ragavan, Joel Raphela, Pushpaveni Govender, and Gupta-linked entities (Optimum Coal Mine, Koornfontein Mines, Tegeta Exploration and Resources) was dismissed in a mine rehabilitation fraud case. The accused face 11 charges, including fraud and money laundering, and with the state’s case having closed, the matter was postponed to May 2026 for the defence to call witnesses.
- 18 July 2025: Businessman Yakub Ahmed Suleman Bhikhu and his company, Homix (Pty) Ltd, were convicted and sentenced for defrauding Transnet of R66 million between 2012 and 2015. Bhikhu pleaded guilty to 81 counts, including fraud and money laundering, resulting in an effective five-year jail term and an order to reimburse R300,000 to Transnet. Homix was also fined R500,000, which was suspended.
- 6 July 2025: Former Transnet executives Brian Molefe, Anoj Singh, and Siyabonga Gama are also facing charges in the Johannesburg High Court in a separate R400 million fraud and corruption case. This case, distinct from the primary locomotive procurement charges, relates to a consultancy service contract.
- 1 July 2025: Thamsanqa Jiyane, Brian Molefe, Anoj Singh, and Siyabonga Gama, identified as the “Transnet Big Four,” were formally charged in court with fraud, corruption, and money laundering in connection with inflated locomotive contracts and a R93 million Trillian payment. All four were released on R50,000 bail each, and their case was postponed to October 2025 for further investigation. ;
- 9 June 2025: Lynne Brown, the former Minister of Public Enterprises who was implicated in enabling Gupta-linked state capture at Eskom and Transnet, was invited to participate in and advise the ANC Western Cape’s strategic planning.
- 12 June 2025: In April 2023, the Free State High Court acquitted all the accused in a fraud and money laundering case that involved payments made by the Free State government to Nulane Investments to conduct a feasibility study that led to the Vrede Dairy Farm project. In June 2025, the Supreme Court of Appeal overturned this decision, paving the way for the accused to be retried for the same offences but presided over by a different judge. The accused are: Iqbal Sharma and his company Nulane Investments; Dinesh Patel, Sharma’s brother-in-law and a representative of Nulane; Peter Thabethe, former head of the Free State Department of Agriculture; Limakatso Moorosi, former head of the Free State Department of Agriculture; Seipati Dhlamini, former Chief Financial Officer of the Free State Department of Agriculture; Ronica Ragavan and the company she represents, which is owned by the Gupta’s Islandsite Investment.
- 14 April 2025: The Pretoria High Court set aside the 2014 contract between Transnet and Wabtec South Africa Technologies (then GE South Africa Technologies) for the procurement of 233 diesel locomotives worth R8bn, declaring it and all associated subcontracts invalid. A statement issued by the SIU and Transnet said that the ruling ‘marks the first of four locomotive contracts to be annulled by the courts, representing a pivotal advancement in our ongoing efforts to combat state capture and restore integrity in South Africa’s state-owned enterprises’. As part of the settlement agreement, Transnet will retain the 233 diesel locomotives delivered by Wabtec, Wabtec will retain all payments received under the contract but provide Transnet with a credit of R70.35m.
- 28 February 2025: Phathutshedzo Mashamba, Transnet’s former coastal regional manager in KwaZulu-Natal, and his wife Matlhodi will pay back over R7.3m in bribes he received from BBDM Bros Advertising Agency. He had admitted to stealing the money and attempting to bribe members of the national executive. The couple also agreed to pay R250 000 towards the SIU’s investigation.
- 21 February 2025: The Palm Ridge Specialised Commercial Crimes Court acquitted Transnet’s former legal head, Kenneth Diedricks, and his co-accused, Charles Pretorius and Refiloe Martins of Polyzomba Rail Contractors, of corruption and money-laundering. The latter were accused of bribing Diedricks with R300 000 in cash and a Persian carpet. The discharges are granted on the basis that the NPA failed to lead evidence that would require the accused to defend themselves.
- 17 February 2025: Zakhele Thabo Lebelo, former CEO of Transnet Property, and Phathutshedzo Mashamba, a former manager under Lebelo, were stripped of their pensions and luxury properties to pay back millions of rands in debts to Transnet following a three-year investigation by the SIU into kickbacks they received while employed by Transnet.
- 31 January 2025: The accused in the Transnet fraud and corruption case – Brian Molefe, Anoj Singh, Siyabonga Gama, Garry Pita and Phetolo Ramosebudi, Regiments Capital directors Niven Pillay and Litha Nyhonhya, Trillian Asset Management director Daniel Roy and Albatime Pty Ltd owner Kuben Moodley – appeared before the Johannesburg High Court, where their trial was set down for 2 February 2026. The accused are all out on bail.
- 13 December 2024: Allan Wayne Tichauer, Sudesh Premchand Rocharam, Yaasien Mahomed and Rafael Bricker appeared in the Johannesburg Magistrates’ Court on charges of laundering over R76m from Transnet through their companies. They were released on R50 000 bail each.
- 5 December 2024: The NPA reached an agreement with McKinsey South Africa, a subsidiary of McKinsey & Company, to resolve an investigation by the United States (US) Department of Justice involving a scheme to bribe South African officials between 2012 and 2016. As part of the agreement, McKinsey South Africa will assist the Investigating Directorate Against Corruption in its criminal investigations by providing information and materials. The firm was awarded contracts with Transnet and Eskom amounting to R2bn and will pay US$122m (R1.1bn) to South Africa’s Criminal Assets Recovery Account in recognition of the social and economic harm caused by the actions of a former employee in South Africa, Vikas Sagar. Sagar pleaded guilty to participating in a conspiracy to violate the US Foreign Corrupt Practices Act on 16 December 2022, but the plea was only unsealed and made public on 5 December 2024.
- 12 November 2024: Brian Molefe, ex-CEO of Eskom and Transnet, launched a legal challenge against the Department of Justice to overturn the findings of the State Capture Commission’s report, citing a lack of direct evidence.
- 1 November 2024: Phumlani Kubheka, a former Transnet project manager, appeared in the Palm Ridge Specialised Commercial Crimes Court in connection with irregular pipeline contracts totalling R160m. Kubheka allegedly approved the contracts despite being aware that the contractors did not possess the requisite qualifications. In 2020, the SIU had initiated an investigation into five contracts awarded by Transnet to IGS Consulting Engineering totalling over R194m. The investigations indicated that Kubheka was cognisant of the irregularities surrounding the appointment of IGS and its joint venture, and that neither entity held the necessary Construction Industry Development Board grading. Kubheka was granted R20 000 bail and his case has been postponed to 19 November, when he is expected to join his co-accused, Linyenga Makainene Herbert Msagala. Msagala was initially detained on 21 October and released on R60 000 bail.
- 11 October 2024:The corruption, fraud and money laundering case against Brian Molefe, Anoj Singh, Siyabonga Gama, Garry Pita, Phetolo Ramosebudi, Niven Pillay, Litha Nyhonhya, Daniel Roy and Kuben Moodley has been postponed to 31 January 2025 for the state to provide the accused with further particulars.
- 13 September 2024: President Ramaphosa issued Proclamation 184 of 2024 instructing the SIU to investigate allegations of serious maladministration related to Siyabonga Gama’s reinstatement as Transnet CEO in February 2011 and the payment of Gama’s legal costs following his reinstatement. The SIU will also investigate allegations of serious maladministration in the procurement of or contracting for goods, works or services of leased accommodation by Transnet, explicitly examining whether Transnet officials or agents acted corruptly or unduly to benefit themselves or others, leading to unauthorised, irregular, fruitless and wasteful expenditures or financial losses for Transnet. The SIU is also authorised to investigate any unauthorised, irregular, fruitless or wasteful expenditure incurred by or losses suffered by Transnet or the state regarding the contract for security services awarded to Abalozi Security Risk Advisory Services (Pty) Limited (formerly known as General Nyanda Security Advisory Services (Pty) Limited). The Proclamation covers allegations of unlawful and improper conduct between 1 January 2007 and 13 September 2024.
- 10 May 2024: Molefe, Gama, Singh, Pita and Ramosebudi appeared in the South Gauteng High Court on charges of contravening the Public Finance Management Act, fraud, corruption and money laundering in connection with Transnet’s procurement of 1 064 locomotives in 2015 worth over R54 billion. The case was postponed to 11 October 2024 for a trial date.
- July 2024: The Special Investigating Unit (SIU) and Transnet announced that they would be suing Nedbank at the High Court in Johannesburg for carrying out allegedly corrupt financial transactions that cost Transnet billions of rands in losses. The SIU and Transnet are asking the court to set aside a series of interest rate swaps and declare them void and unenforceable under the Public Finance Management Act. This would make Nedbank liable to repay an estimated amount of R10.5bn.Nedbank has denied any wrongdoing and said it would “strongly defend the litigation against it and will pursue its counterclaims against Transnet and others … To the extent that there was corruption, this was on the part of the Regiments Group and Transnet’s staff members and not Nedbank.”
- 23 August 2024: President Ramaphosa issued Proclamation 174 of 2024 instructing the SIU to investigate allegations of serious maladministration, corruption, fraud within Transnet and to recover any financial losses suffered by the State or Transnet. The Proclamation covers allegations of unlawful and improper conduct that occurred between 1 January 2014 and 23 August 2024, as well as any related activities before 1 January 2014 and after the date of the Proclamation that relate to the matters under investigation or involve the same persons, entities or contracts. The SIU will also identify systemic failures and recommend measures to prevent future losses.
- 3 May 2022: Regiments Capital, along with directors Niven Pillay and Litha Nyhonyha, paid back R639-million to the Transnet Second Defined Benefit Fund. This restitution followed legal action by the Fund, which had accused them of illicitly diverting hundreds of millions of rands “misappropriated” from pensioners. These funds were allegedly siphoned into a Gupta family bank account used for an Optimum Coal Mine deposit.
Public Impact
