Democratic Alliance (DA) says it will lay criminal charges against former Chief Executive Officer (CEO) Brian Molefe, former Chief Financial Officer Anoj Singh, board sub-committee Chairperson Iqbal Sharma and Gupta lieutenant Salim Essa.
This follows the latest forensic report by law firm Mncedisi Ndlovu & Sedumedi attorneys on the R15,4 billion price inflation on Transnet locomotives procurement that DA believes will form part of the affidavit of the criminal charges against the four.
In a statement on Sunday, DA Shadow Minister of Public Enterprises Natasha Mazzone said the law firm report recommends that corruption charges be brought against the four individuals and steps taken by Transnet to recover the money lost from Molefe.
The latest report follows a Werkmans Attorney’s report which found out that Brian Molefe, Gupta associates, and current Transnet CEO, Siyabonga Gama, may have breached the Public Finance Management Act for “…serious breaches of statutes, regulations, corporate governance and unlawful conduct in relation to the transaction – involving billions of rand.
Mazzone said the DA is confident that two reports from different law firms have reached the same conclusion on the magnitude of the criminal enterprise that Molefe and the Gupta associates presided over for the benefit Gupta-linked firms, provides enough evidence for a criminal investigation to be instituted without delay.
“Transnet is a vital cog in South Africa’s economic infrastructure and the financial pilferage it endured at the hands of corrupt ANC deployees like Molefe may have cost thousands of jobs that could have been created had the money been put to good use,” said Mazzone.
Mazzone said it is therefore essential that, while criminal charges are pursued, the current Transnet Board must act on the MNS recommendation to recover money lost by Molefe through his deliberate acts of economic espionage.
Failure to do so said Mazzone the DA will render the entire Board complicit in violating good corporate governance practices which enjoins them to act against any perceived threats to Transnet’s financial health.
“President Ramaphosa must understand the collapse in governance has not only taken place in ANC run provinces but had also become pervasive in State Owned Enterprises (SOEs). Taking stern action against Gupta lieutenants is an essential first step in fixing the culture of corruption in SOEs,” added Mazzone.