The misrepresentation by Molefe and Singh contributed to the increase in escalations, forex and contingencies ETC by at least R6.7 billion. Photo: David Ritchie/African News Agency (ANA)

JOHANNESBURG – Disgraced former Transnet chief executive Brian Molefe and chief financial officer Anoj Singh have been found to have lied to the company's board, with the lies having cost the group billions of rand.

A forensic report into Transnet found Molefe and Singh misrepresented facts to the Transnet board by indicating R38.6 billion excluded potential effects from forex and hedging will be needed to procure 1 064 locomotives.

"The misrepresentation by Molefe and Singh contributed to the increase in escalations, forex and contingencies ETC by at least R6.7 billion," reads the report.

Investigators further found that the total Transnet Engineering (TE) scope allocated for the acquisition of the 1 064 locomotives was R7.5 billion. The actual Transnet Engineering scope was R5 billion more than the approved Transnet Engineering scope in the memorandum dated 23 May 2014.

“We determined that Molefe, Gama and Singh misled the Board by indicating in the memorandum dated 23 May 2014 that Transnet Engineering scope was R2.6 billion whereas in truth and in fact the Transnet Engineering scope was R7 billion,” reads the report.

“Molefe, Gama and Singh failed to ensure that the memorandum dated 23 May 2014 contained the actual figures of R7.5 billion in respect of the Transnet Engineering scope.”

BUSINESS REPORT