Brian Molefe helped to loot Transnet - Report
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CAPE TOWN - Former Transnet boss, Brian Molefe reportedly lied to the Transnet board to amplify the 1 064 locomotive tender which awarded Gupta-linked businesses billions of rands.
According to a December 7, 2017 report which was compiled by law firm Werkmans, Molefe is described as “cloaked in corrupt and reckless activity” according to Fin24.
According to the report, part of the increase of almost R16bn over the estimated and originally approved cost for the tender appear to be unreasonable.
Despite the claims in the report, Transnet did not act and instead appointed law firm, MNS Attorneys to investigate the claims further.
Further illicit dealings were revealed by an April 2013 proposal to buy 1 064 electric and diesel locomotives. This contract would have cost Transnet R38.6 billion over a span of seven years. However, the contract escalated to R54.5 billion.
According to the report, Molefe reportedly requested the board to approve the increase in cost, citing fluctuations in currency value and variations in cost. Yet, these costs were reportedly already accounted for in the R38.6 billion amount.
Current Transnet chief executive Siyabonga Gama reportedly raised concerns, however, the proposal was still approved.
Four suppliers reportedly benefited from the tender. One company of note is China South Rail (CSR) which are also the Gupta’s business partners.
The company was also reportedly allowed to award the Guptas R10 million for every R50 million locomotive they built.
CSR was also given a 30% advance payment, according to a forensic report compiled by Wits University accounting Professor Harvey Wainer.
Advance payments of R11.2 billion were made to four bid winners. Meanwhile, Transnet spokesperson Molatwane Likhethe deemed the report as inconclusive while Molefe reportedly claimed that he did not see the report.
- BUSINESS REPORT ONLINE