- Former Transnet and Eskom chief financial officer Anoj Singh and former chief executive officer Brian Molefe were arrested on Monday.
- Singh and Molefe are expected to face charges relating to Public Finance Management Act violations and fraud.
- The case is linked to R93-million "double invoicing" at Transnet in 2015.
Two of the most senior officials involved in state capture during former president Jacob Zuma's tenure have been arrested, marking a significant milestone in the ongoing effort by the National Prosecuting Authority's (NPA) Investigating Directorate (ID) to fulfil its mandate.
Former Transnet and Eskom chief financial officer Anoj Singh and former chief executive officer Brian Molefe appeared in the Palm Ridge Magistrate's Court in Johannesburg on Monday morning.
They were expected to be added to the case against another former Transnet CEO Siyabonga Gama. Gama was arrested along with former Transnet group treasurer Phetolo Ramosebudi, former acting CFO Garry Pita, as well as Eric Wood, a shareholder and former director of Regiments. Daniel Roy, from a company called Novum Asset Management, was also arrested.
All five were arrested in May and made a second court appearance in July, alongside Kuben Moodley, the husband of a former Eskom board member and alleged money launderer for the Gupta enterprise.
Singh and Molefe were expected to appear in court alongside them on Monday and would also face charges relating to Public Finance Management Act (PFMA) violations, and fraud.
READ | Brian Molefe, Anoj Singh among four people arrested in R93m locomotive corruption case
The case is linked to R93-million "double invoicing" in June 2015. In simple terms, Transnet appointed consultants to advise them to secure financing - approximately $2.5 billion (R31.5 billion at the time) - for the state-owned rail company to procure 1 064 locomotives.
An invoice of R93.4 million was submitted to Transnet by Trillian - the Gupta-linked advisory firm that was appointed transaction advisor for the deal.
Pita and Gama approved the payment in December 2015, and three days later R74 million was paid to Moodley's company, Albatime. In June 2015, Transnet had paid Regiments R189 million - allegedly for the same services.
While Singh and Molefe would later commit further alleged crimes at Eskom, which also benefitted the Gupta enterprise, their roles at Transnet secured nearly R3.5 billion in kickbacks for the Guptas and their associates.
AmaBhungane previously reported that the locomotive contracts were awarded to General Electric, Bombardier Transportation, China South Rail, and China North Rail in 2014. All told, the contracts were worth around R54 billion.
The two Chinese manufacturers, that later merged, signed deals with Gupta-linked entities to pay in the region of R9 billion in kickbacks, which were linked to R42 billion of the overall procurement. The GuptaLeaks showed that Gupta-linked companies had received more than R3 billion of the promised money by 2016.
It is expected that Molefe and Singh would be added to the overall case around the 1 064 locomotives. The charges against them will be extensive - ranging from PFMA violations, to possibly more serious charges of money laundering and fraud, as well as corruption.
The charge sheets are expected to be handed over in court - at which time it will become clear how the ID prosecutors plan to handle the case.
These are not the only charges expected to be levelled against Molefe and Singh. The Zondo Commission made several recommendations for further investigations and possible prosecutions linked to Transnet and Eskom.
- Jeanette Chabalala contributed, reporting from the Palm Ridge Magistrate's Court
