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Daily Maverick
02-07-2025
- Business
- Daily Maverick
Exclusive: Transnet State Capture Big Four face 32 charges of corruption, fraud and of being delinquent directors
The charge sheet details how contracts were inflated by at least R18-billion, revealing how and where bribes were paid. Fourteen years ago, there was no stopping the Transnet Big Four executives – CEO Brian Molefe, his CFO Anoj Singh, the head of freight rail Siyabonga Gama and chief engineer Thamsanqa Jiyane. As the Commission of Inquiry into State Capture heard, the four were all powerful mandarins of the state corporation. They did not defer to the board, nor Transnet's treasury, nor to its bid adjudication committees, as they rushed through a locomotive acquisition that would ultimately cost South Africa billions of rands in inflated costs and multiple times more in lost opportunities as rail went to the wall. Now the four face 32 charges contained in a charge sheet brought against them by the Independent Directorate Against Corruption (Idac) as it gets to grips with prosecuting the State Capture cases at the rail utility. The charge sheet reveals that the Idac has alleged fraud, corruption and violations of the Public Finance Management Act and the Companies Act against the four, with a trial set to begin in October. Arrested this week, all four are out on bail of R50,000 each and have surrendered their passports. All four pleaded poverty and said they could not afford the original bail request of R200,000 each when they appeared in the Palm Ridge Court on Monday, 30 June. Two, Molefe and Gama, are MPs in former President Jacob Zuma's MK party. The charges brought under a quartet of laws seek to prosecute them from four angles, including dereliction of corporate and constitutional duty (charges under the Public Finance Management Act and the Companies Act) as well as fraud and corruption under the Prevention and Combating of Corrupt Activities Act (Precca). Here are the numbers of charges each faces, comprising variations of contraventions of the four laws. Anoj Singh (13); Molefe (10); Gama (6); and Jiyane (3). The four are accused of acting in concert (using a common purpose prosecution) to defraud Transnet and are alleged to have benefited through bribes detailed in the charge sheet and also ventilated in hearings at the Commission of Inquiry into State Capture. It all started in 2011, two years after President Jacob Zuma took office, as State Capture extended its claws into the parastatals Eskom, Transnet and Denel. Also involved were their SA acolytes, the businessmen Salim Essa and Iqbal Meer (who chaired Transnet's acquisitions board committee), and the Gupta family that later installed Molefe as CEO and had Singh and Gama in their pockets, the State Capture inquiry heard. The criminal charges against the four traverse the same ground as the Commission, but it has taken time to formulate the package of charges each now faces. Rolling stock bonanza In 2011, Transnet decided to boost rail freight demand by re-kitting its rolling stock. Over the next four years, the four allegedly conspired to favour the Chinese Rail Corporation (CRC), which was then divided into the China South Rail and China North Rail divisions. Essa earned handsome commissions for putting together this deal, the commission heard. Molefe, for example, was found by the commission to have ensured that the company did not have to meet the BEE conditions required of other suppliers. The Transnet whistle-blower, Francis Callard, detailed to the State Capture commission how the Japanese supplier, Mitsui, was elbowed aside in a series of corporate manoeuvres, and he was often kept in the dark. In 2014, Molefe and Singh signed off on contracts without board or government approval, and soon the costs ballooned from an initial R38.6-billion to R54.5-billion. The charge sheet details how, in each tranche of the three-phase transaction, payments exceeded agreed costs by almost R20-billion. The charge sheet details these as follows: in the first 95 locomotive transactions, a payment of R3.4-billion overshot the approved contract value by R231-million. In the 100-locomotive transaction, a payment of R5.18-billion exceeded the approved value by R348-million. In the big-ticket purchase of 1,064 locomotives, Transnet suffered a prejudice (loss) of R18.7-billion. Transnet is also alleged to have lost an additional R368-million in a botched relocation of an assembly line to Durban. Transnet is being steadily repaired by a combination of a new executive team led by CEO Michelle Philips, the Operation Vula team in the Presidency, and the secondment of seasoned rail and logistics executives from business through the B4SA partnership. However, it remains hobbled because many of the trains at the centre of the State Capture case are not operational, resulting in rail volumes that are significantly lower than they should be to transport the freight company to its desired destination. Between 2012 and 2015, the four are alleged to have benefited from cash and benefits from the Gupta family, including trips to Dubai and cash payments from Saxonwold. The family's mansion complex (3, 5, and 7 Saxonwold Drive) is being auctioned through Park Village Auctions on 24 July. Molefe, Singh, and Gama were also arrested in August 2022 in connection with a R93-million payment to Trillian Capital (a Gupta company run by the flamboyant businessman Eric Wood) for one of the locomotive transactions. That case is scheduled to come to court in February 2026, while the proceedings against the Big Four have been postponed to October 2025. DM
The Citizen
30-06-2025
- The Citizen
Top 10 stories of the day: Transnet execs granted bail
Here's your daily news update for Monday, 30 June 2025: An easy-to-read selection of our top stories. News today includes four former Transnet executives have been granted bail of R50 000 each with conditions. Meanwhile, as calls grow for Higher Education Minister Nobuhle Nkabane to be removed for failing to deliver on the department's basic responsibilities, the minister said it is the prerogative of President Cyril Ramaphosa to redeploy her. Furthermore, South African National Parks recorded one of the largest vulture poisoning events in Southern Africa on 6 May 2025. A total of 116 vultures were found dead at the scene in the Kruger National Park, and 84 were retrieved alive. Weather tomorrow: 1 July 2025 Expect strong, damaging winds across parts of the Northern Cape, while some areas of the Western Cape are at heightened risk of wildfire eruptions. Full weather forecast here. Stay up to date with The Citizen – More News, Your Way. Transnet executives Molefe, Gama and two others granted bail [VIDEO] Four former Transnet executives have been granted bail of R50 000 each with conditions. Transnet executives, Brian Molefe and Siyabonga Gama, the company's former CFO, Anoj Singh, and top engineer, Thamsanqa Jiyane, appeared in the Specialised Commercial Crimes Court at the Palm Ridge Magistrate's Court in Ekurhuleni on Monday. Former Transnet CFO Anoj Singh, Transnet executives, Brian Molefe and Siyabonga Gama and top engineer, Thamsanqa Jiyane. Picture: NPA Molefe and Gama were arrested after surrendering to police on Monday morning. Singh and Jiyane were also handcuffed on the same day. The state did not oppose bail. CONTINUE READING: Transnet executives Molefe, Gama and two others granted bail [VIDEO] Where does Johannesburg's air quality rank among global polluters? Residents surveyed by environmental groups in Johannesburg have questioned the city's air quality. Breathe Cities and the Clear Air Fund (CAF) recently completed a poll of public perceptions that the municipality intends to use to formulate future policy. Smoke rises from a factory over Skopje, North Macedonia. Image for illustrative purposes. Picture: Robert Atanasovski / AFP However, global evaluation and ranking systems put Johannesburg well behind the world's most dangerous cities for human respiratory systems. CONTINUE READING: Where does Johannesburg's air quality rank among global polluters? 'It's the president's prerogative': Nkabane responds as critics demand her axing As calls grow for Higher Education Minister Nobuhle Nkabane to be removed for failing to deliver on the department's basic responsibilities, the minister said it is the prerogative of President Cyril Ramaphosa to redeploy her. Nkabane has come under fire after being embroiled in allegations of corruption and the illegal appointment of the Seta board, including accusations that she misled Parliament by providing false information about the procedure for appointing Seta chairs — a list dominated by ANC cadres — and about the composition of the panel that made the appointments. Minister of Higher Education and Training Dr Nobuhle Nkabane at the official launch of the National Skills Fund (NSF) Disabilities Programme Phase I at Blind SA on 29 November 2024 in Alberton, South Africa. Picture: Gallo Images/Fani Mahuntsi On Sunday, the South African Students Congress (Sasco) called for the immediate removal of Nkabane. CONTINUE READING: 'It's the president's prerogative': Nkabane responds as critics demand her axing Here's how to manage household electricity usage as municipal tariff increases kick in Newly approved electricity hikes will come into effect tomorrow and will have households scratching their heads as to how much more they can limit their usage. The National Energy Regulator of South Africa (Nersa) approved tariff increases between 4 to 5 times higher than latest inflation figures for over 100 municipalities in recent weeks, placing strain on consumers across the country. Picture: iStock Alarm over the increases was illustrated by Nersa's comment that a record number of objections and submissions by affected customers were received from individual households. CONTINUE READING: Here's how to manage household electricity usage as municipal tariff increases kick in Vultures lead rangers to one of SANParks' largest poisoning events South African National Parks recorded one of the largest vulture poisoning events in Southern Africa on 6 May 2025. A total of 116 vultures were found dead at the scene in the Kruger National Park, and 84 were retrieved alive. Andrew Desmat, Mahlangeni section ranger where the poisoning incident occurred, painted a picture of the state of the scene on the infamous day. Picture: Michel Bega/The Citizen 'The way we found the scene was due to the vultures; we could see that there was a feeding event at this location. There were three or four birds that had tracking devices that landed here,' Andrew said. CONTINUE READING: Vultures lead rangers to one of SANParks' largest poisoning events Here are five more stories of the day: Yesterday's News recap READ HERE: Helen Joseph denies corpse crisis |Fannie Masemola not arrested | City Power staff held hostage
The Citizen
30-06-2025
- Business
- The Citizen
Former Transnet top executives granted bail in R93m tender fraud case
Two MK Party MPs, Brian Molefe and Siyabonga Gama, both of whom are former Transnet executives, were granted R50 000 bail each by the Palm Ridge Magistrate Court earlier today (June 30). The pair is facing fraud and corruption charges related to Transnet's R54b locomotive tenders. Molefe, Gama, former Transnet CFO Anoj Singh and the parastatal's former engineering chief executive Thamsanqa Jiyane appeared at the court following their arrest this morning. Also rea: Former Transnet top executives Brian Molefe and Siyabonga Gama arrested While the value of the entire Transnet locomotive procurement deals was R54b, the four former Transnet executives were being charged in relation to part of the tenders, which, according to the Hawks, were worth R93m. It was the second time the two MK Party MPs, who were Transnet top executives between 2011 and 2019, were being arrested. In 2022, the two former Transnet executives were arrested in connection with part of the parastatal's same R54b locomotive procurement, which involved a Gupta-linked company called Trillian Capital. According to evidence before the Palm Ridge Commercial Crimes Court, Trillian Capital was awarded contracts irregularly at different phases during the procurement process without participating in open bids. Molefe, who was Transnet CEO from February 2011 to April 2015, was succeeded by Gama, who was previously the CEO of Transnet subsidiary Transnet Freight Rail. Also read: R18,8b Transnet recovery loan approved In 2018, the Transnet board commissioned a forensic investigation into the R54b locomotive tenders. The law firm appointed by the board, Mncedisi Ndlovu Sedumeni, found that the payments which Trillian received from Transnet were irregular. Molefe and Gama were also implicated in the Zondo Commission which investigated state capture and corruption. In its report, the commission recommended that Molefe and Game should face a criminal investigation. Meanwhile, the MK Party urged the courts to ensure that Molefe and Gama received a fair trial. Read original story on At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
The Citizen
26-06-2025
- Business
- The Citizen
Sassa grant recipients forced to repay thousands after income threshold breaches
One Sassa child grant recipient was told her income had pushed her above the qualifying threshold. Grant recipients who are working while receiving social assistance payments are being forced to repay thousands of rands after exceeding income thresholds, with some facing demands exceeding R3 000. The South African Social Security Agency (Sassa) has implemented strict repayment policies that are leaving beneficiaries financially strained and questioning its communication practices. Some Sassa grant recipients hit with massive bills Quincie Gama — whose name has been changed — is a working mother who has been receiving the Child Support Grant since January. However, she discovered she owed Sassa a substantial amount when her payments suddenly stopped in May and June. After being called in for verification, she was informed that her employment income had pushed her above the qualifying threshold. 'They said when I come I should have my bank statement, my ID copy and the baby's certificate. They also said if I'm working, I should bring my payslip. 'I recently went to their offices and they verified my information. When they were done, they said because I've been working since January and I still got the Sassa grant, they're going to stop the grant because my stipend is way above the Sassa grant means threshold,' Gama explained. The financial impact was immediate and severe. Sassa told Gama that she could make repayments of R560 per month as she had received grant amounts from January, totalling approximately R3 360. The agency offered her two options: pay the full amount immediately before the end of June, or spread the payment over six months at R560 per month. However, Gama said she was informed that choosing the installment option would incur interest charges. 'I don't know which option to choose, because I definitely don't have R3 000, I didn't budget for it. But also paying in installments sounds draining and will cost more,' said Gama. ALSO READ: Sassa grants out next week: Here are the payment dates for July Income thresholds vary by Sassa grant type Sassa spokesperson Paseka Letsatsi explained that income thresholds differ depending on the specific grant and the applicant's marital status. For the Child Support Grant, single applicants must earn less than R5 600 per month or R67 200 annually, while married applicants face a threshold of R11 200 monthly or R134 400 annually. 'The income threshold varies according to the grant in question as well as the marital status of an applicant,' Letsatsi told The Citizen. Sassa grant values and thresholds. Image: Screenshot/Supplied Repayment process and policies When repayment is necessary, Sassa provides several options for beneficiaries. Letsatsi outlined the available methods: recipients can approach any Sassa local, district, or head office to make arrangements. Payment can be made at Sassa cash offices where available, through bank transfers to Sassa's regional accounts, or via stop orders arranged directly through the beneficiaries' banks. 'An individual can approach the Sassa local, district and head office to make an arrangement. The individual can pay at the Sassa cash office, however these are not available in all regions. He or she can also pay at the bank and in this case all Sassa regions have bank accounts. Lastly an individual can make a stop order by going to his or her bank and pay Sassa direct,' she explained. Letsatsi explained that the agency operates under the Department of Social Development's social assistance debtors policy that allows varying repayment periods. When beneficiaries cannot afford to pay within the standard timeframe, extensions can be approved by delegated authority. 'Sassa has an approved social assistance debtors policy where it allows different periods to repay and where an individual cannot afford to pay within that period, a decision to allow more time can be approved by the delegated authority,' Letsatsi said. ALSO READ: Are Sassa payments in the Eastern Cape at risk due to floods and a looming cold front? Interest and enforcement Interest charges on outstanding amounts depend on the type of debt, with some not accruing interest at all. When interest does apply, the rate follows National Treasury guidelines and fluctuates accordingly. Beneficiaries who fail to meet repayment deadlines receive statements and reminder letters, after which they must approach the agency to rearrange their payment plans. ALSO READ: Ten of 11 accused in Sassa R260 million fraud case granted bail Personal impact and communication concerns For Gama, who visited the Pretoria local office, the repayment demand created significant financial strain. Her experience highlighted concerns about Sassa's communication with beneficiaries regarding income changes and grant eligibility. 'I feel upset because I feel like it's something they should've communicated when you applied. They also could have included this fine line in the statement that they recently released regarding verification to warn beneficiaries.' If you are not paid your social grant for the month of May 2025 please visit your nearest SASSA office, you may be required to complete a verification process if affected. #SASSAVerification#SASSACARES #ProtectYourGrant — SASSA (@OfficialSASSA) May 2, 2025 Gama said she wasn't earning enough to be able to pull R3 000 from her own pocket. She added that the grant money being taken away from her was devastating and would set her back on her monthly budget. 'It is sad, you know, the money really helped a lot with the baby stuff, it really helped me push through the month, especially with covering things like baby porridge and purity and the likes.' The situation was further complicated by administrative issues. Despite not receiving payments for May and June, Gama was initially told she would need to pay for June as well, with a refund only possible after her bank statements confirmed non-receipt of those payments. ALSO READ: Bank surveillance and poverty risk: UBIC warns of devastating impact on Sassa beneficiaries Sassa grant eligibility requirements According to Sassa, the Child Support Grant requires that primary caregivers be South African citizens, permanent residents, or refugees permanently residing in the country. Both applicant and child must reside in South Africa, with the child being under 18 years of age. Documentation requirements include birth certificates for children and 13-digit barcoded identity documents for applicants and spouses. Applicants must serve as primary caregivers and cannot apply for more than six non-biological children. Furthermore, Sassa states that the child cannot be cared for in a state institution, and school-age children must attend school and provide proof of attendance, though failure to do so will not result in grant refusal. The means test, implemented in line with the Social Assistance Act of 2004, ensures grants reach eligible beneficiaries by examining income sources and assets. All grants, except foster care, undergo means testing, with requirements varying by grant type. 'The means test looks into sources of income and assets of the applicant,' Letsatsi confirmed. READ NEXT: Pensioners desperate for clarity after not receiving Sassa grants in June
The Citizen
26-06-2025
- The Citizen
eMalahleni coach found guilty of molesting boys during soccer camps
Soccer coach Sibusiso Gama has been found guilty by the Witbank Magistrate's Court in eMalahleni of molesting minor boys entrusted to his care during soccer camps. Witbank News reports that Gama appeared in court on Tuesday, where legal proceedings surrounding three cases opened two years ago took place. Although he pleaded not guilty to all charges, he was acquitted in the first case, which occurred in September 2023. However, the magistrate found him guilty in the other two cases, which took place in mid-May that year. This follows his arrest in 2024 on charges of molesting three teenage boys during soccer camps. In court, it was revealed that in all three incidents, Gama targeted boys who slept next to him during the camps, using the opportunity to molest them. Gama remains in custody until his sentencing on July 15. Breaking news at your fingertips… Follow Caxton Network News on Facebook and join our WhatsApp channel. Nuus wat saakmaak. Volg Caxton Netwerk-nuus op Facebook en sluit aan by ons WhatsApp-kanaal. Read original story on At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
