Former Transnet group chief executive Brian Molefe was arrested in a Hawks-led raid on Monday.
What charges does Brian Molefe face?
As reported by Times Live, Molefe and another ex-Transnet executive, former CFO Anoj Singh, were taken down in an arrest raid carried out by the Hawks under strict instructions from the NPA’s investigative directorate.
The high-level arrest sent shockwaves across social media and a clear message to South Africa’s political realm.
From what we understand, both suspects’ legal representatives were made aware of the impending arrests, and according to the investigative directorate’s Sindisiwe Seboka, Monday’s events were more of a formality than an actual raid.
Molefe and Singh are expected to appear before a court in Johannesburg on Monday, where it’s likely they’ll be released on bail.
Molefe, a man who, in the past, has been vocal about President Cyril Ramaphosa’s skeletons, faces corruption and fraud charges, and according to reports, he joins former Transnet CEO Siyabonga Gama, former interim CFO Garry Pita, Transnet Group’s ex-treasurer Phetolo Ramosebudi, Regiments Capital shareholder Eric Wood and his employee Daniel Roy, as well as the owner of Albatime Kuben Moodley, as co-accused in the R93 million Trillian fraud case.
The Transnet R93 million fraud case
State prosecutors firmly believe Molefe and his former colleagues played a central role in the movement of R93 million in a $2.5 billion club loan deal that would have seen Transnet purchase 1 024 locomotives in 2015.
According to Seboka, Molefe, the chief executive at the time, as well as other figures at the state parastatal, greenlit the payment of R93 million to Trillian for apparently facilitating the club loan without actually doing anything.
“In May 2015, Transnet appointed JP Morgan for advisory services. In July – October 2015, the same officials in Transnet started facilitating the termination of the JP Morgan contract. This cancellation resulted in them appointing Trillian in October 2015.
“An invoice of R93.4 million was submitted by Trillian through [Trillian Director] Roy. The invoice was approved by Pita and Gama, and payment was made on 3 December 2015 to Trillian’s account. Three days after that, R74 million was paid to Albatime, owned by Kuben Moodley, for no apparent reason,” Seboka revealed.
In fact, it’s believed Transnet had already funnelled R189 million in ‘commission’ to Gupta-linked Regiments Capital for facilitating the same deal, in June 2015.
Molefe and his co-accused will face charges related to the contravention of the Public Finance Management Act, fraud, corruption and money laundering.