DA to add ‘Traingate’ report to criminal charges against Molefe and Gupta associates

JOHANNESBURG- DA shadow minister of public enterprises Natasha Mazzone said the latest forensic report by law firm Mncedisi Ndlovu & Sedumedi (MNS) attorneys has led the party to lay criminal charges against Molefe.

The report detailed that R15.4-billion price inflation on Transnet locomotives procurement and will form part of the DA’s affidavit of the criminal charges.

DA will also be laying charges against former chief financial officer Anoj Singh‚ board sub-committee chairperson Iqbal Sharma and Gupta lieutenant Salim Essa.

The MNS report recommended that corruption charges be brought against the four individuals and steps taken by Transnet for Molefe to pay back the money.

This report is the latest after Werkmans Attorneys’ report found that Molefe‚ Gupta associates and current Transnet CEO Siyabonga Gama possible could of breached the Public Finance Management Act (PFMA) for “serious breaches of statutes‚ regulations‚ corporate governance and unlawful conduct in relation to the transaction – involving billions of rand”.

DA’s Mazzone said that the two reports from different law firms has provided them enough evidence for a criminal investigation to be instituted with no 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.

“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 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‚” Mazzone said.

“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‚” she added.

In a Sunday Times report, it said that Molefe will possibly need to refund some the almost R19-billion he was accused of wasting on a implicated locomotive deal while he was still CEO.

Photo Credit- Netwerk24

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