R93M Tender Fraud: Ex-Transnet Executives Brian Molefe, Siyabonga Gama, and Anoj Singh Go to Court
Johannesburg – Former Transnet executives Brian Molefe, Siyabonga Gama, Anoj Singh, and engineer Thamsanqa Jiyane have been arrested on allegations of fraud involving R93 million.
The four defendants appeared in Palm Ridge Magistrate’s Court on Monday, June 30, 2025, facing claims of a double payment of R93 million linked to the procurement of 1,064 locomotives.
At the time of the alleged infractions, Molefe was the Group CEO of Transnet, Gama served as CEO, Singh held the CFO position, and Jiyane was the Chief Procurement Officer.
They face 18 charges, including breaches of the Public Finance Management Act (PFMA), fraud, corruption, and violations of the Companies Act.
These allegations arise from Transnet’s strategic efforts in 2011 to enhance capacity, which resulted in the development of their Market Demand Strategy (MDS).
The MDS aimed to upgrade and modernize the nation’s port, rail, and pipeline infrastructure over a seven-year span, with a particular emphasis on transferring rail-friendly freight from road to rail.
During the locomotive procurement process intended to enhance the country’s rail system, it is alleged that the defendants bypassed the tender process by improperly selecting a Chinese company, CSR, to provide the 95 ineligible locomotives.
Additional claims suggest that necessary procedures were overlooked to favor CNR.
Ultimately, a bid priced at just over R3.2 billion allegedly surpassed its contract value by more than R231 million, leading to a payment that exceeded R3.4 billion.
Two further bids concerning the procurement of 100 and then 1,064 locomotives were once again awarded to CNR amid suspicions of mismanagement by the accused.
It is claimed that the cost of the initial 100 locomotives escalated from R3.8 billion to R4.8 billion, while the cost for the 1,064 locomotives rose from R38.1 billion to R54 billion.
All accused held prominent roles within Transnet, a State-Owned Entity.
They were responsible for conducting due diligence and ensuring Transnet received value for its expenditures.
However, they are alleged to have facilitated and ensured inflated costs while unjustly benefiting their selected bidder.
IDAC Spokesperson Henry Mamothame remarked that this case exemplifies state capture.
The State Capture Commission inquiry uncovered extensive looting amounting to billions from Transnet.
The legal representatives of the accused passionately urged for their clients’ release on bail.
All four individuals charged with fraud and corruption were granted bail of R50,000 each, subjected to strict conditions imposed by the Palm Ridge Specialized Commercial Crime Court, which has postponed the case until October 6, 2025.