Court papers show Transnet execs ‘colluded fraudulently’

Court papers filed by Transnet to recover R189-million in inflated payments from Gupta-linked Regiments Capital have revealed collusion by senior executives of the state-owned firm, in allowing the transaction.

Former Transnet CEO Siyabonga Gama, former chief financial officer Anoj SinghRobert Ramosebudi who resigned in October as group treasurer and Garry Pita who vacated his chief financial officer position in April, are said to have “colluded fraudulently to cause Transnet to transfer to Regiments an over-payment of R151-million”.

The papers filed in the Johannesburg high court on Thursday, list among other allegations the following eight transgressions by the executives:

  • Singh, Gama, Pita and Ramosebudi recommended that the board acquisitions and disposal committee approve the appointment of Regiments on a risk sharing agreement, despite the company not being on risk, to provide transaction advisory services related to the locomotives tender.
  • Singh and Pita recommended in a memorandum dated May 19 2015 that Gama approve the payment of R166-million (excluding VAT).
  • They knew or should have known that Regiments was owed R15-million not R166-million.
  • Regiments on June 3, 2015, submitted an invoice for payment of R166-million (excluding VAT), which was signed by Singh on June 11 2015.
  • Gama — who was then chief executive of Transnet Freight Rail — signed off the R166 approval of Regiments payment on July 16 2015.
  • He presented to employees responsible for paying creditors that Transnet owed Regiments R166-million for supplying advisory services.
  • Despite a demand dated October 23, 2018, the defendants are said to failed to and/or refused to pay Transnet the sum of R189-million.
  • Singh, Gama, Ramosebudi and Pita breached their fiduciary duties by recommending and/or procuring or permitting the overpayment and they should have foreseen that their conduct would result in Transnet sustaining losses.

The court bid is the first major action by the board to act against those who have been found to have enabled the draining of resources at the entity. — Fin24

Advertisting

Salie-Hlophe accuses Goliath of lying and racism

In response to Goliath’s gross misconduct complaint, Salie-Hlophe says Goliath has ‘an unhealthy obsession with my marriage’

Treasury is still seeking SAA funds

The government has committed an additional R2-billion to the airline, but has yet to pay it out

‘There were no marks on his neck’, Neil Aggett inquest...

The trade unionist’s partner at the time he was detained at John Vorster Square says she now believes his death was not a suicide
Advertising

Press Releases

Boosting safety for cargo and drivers

The use of a telematics system for fleet vehicles has proved to be an important tool in helping to drive down costs and improve efficiency, says MiX Telematics Africa.

Silencing the guns and firearms amnesty

Silencing the guns and firearms amnesty

Gender-based violence is an affront to our humanity

Gender-based violence is an affront to our humanity

UK-Africa investment summit 2020: Think Africa Invest SA

UK-Africa investment summit 2020: Think Africa Invest SA

MTN unveils TikTok bundles

Customised MTN TikTok data bundles are available to all prepaid customers on *136*2#.

Marketers need to reinvent themselves

Marketing is an exciting discipline, offering the perfect fit for individuals who are equally interested in business, human dynamics and strategic thinking. But the...

Upskill yourself to land your dream job in 2020

If you received admission to an IIE Higher Certificate qualification, once you have graduated, you can articulate to an IIE Diploma and then IIE Bachelor's degree at IIE Rosebank College.

South Africans unsure of what to expect in 2020

Almost half (49%) of South Africans, 15 years and older, agree or strongly agree that they view 2020 with optimism.