Former Transnet Chief Executive Officers Siyabonga Gama and Brian Molefe have surrendered to authorities in connection with charges of fraud, corruption, and money laundering. These charges relate to a controversial R93 million locomotive contract.
The two are scheduled to appear in the Palm Ridge Magistrate’s Court on Monday. Their arrests were carried out by the Investigating Directorate Against Corruption.
The case stems from a 2015 tender for the procurement of 1,064 locomotives, which formed part of a broader R54 billion contract that has faced allegations of irregularities and breaches of the Public Finance Management Act.
Entities linked to the Gupta family, including Regiments Capital and Trillian Asset Management, are under investigation for suspicious payments.
These include a R93.4 million transfer to Trillian and an additional R305 million in unexplained contract increases. Shortly after receiving the funds, Trillian paid R74 million to Albatime, a company owned by Gupta associate Kuben Moodley. Reports suggest this payment lacked valid justification.
The total cost of the project rose significantly, climbing from an estimated R38 billion in 2012 to over R50 billion. This sharp increase raised concerns about financial mismanagement.
A forensic report released in 2018 found that Molefe had misled the Transnet board by failing to inform the then Minister of Public Enterprises, Malusi Gigaba, about the cost escalations.
Following its findings, the Zondo Commission of Inquiry into State Capture recommended criminal investigations into Molefe, Gama, and former Chief Financial Officer Anoj Singh for their involvement in the alleged misuse of public funds linked to the Gupta network.
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