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

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever. But it comes at a cost. Advertisers are cancelling campaigns, and our live events have come to an abrupt halt. Our income has been slashed.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years. We’ve survived thanks to the support of our readers, we will need you to help us get through this.

To help us ensure another 35 future years of fiercely independent journalism, please subscribe.

Advertising

The recovered remain cautious

People who have survived Covid-19 are not going through life carefree. They are still taking all the preventative measures

Lockdown relief scheme payouts to employees tops R14-billion

Now employers and employees can apply to the Unemployment Insurance Fund for relief scheme payments
Advertising

Press Releases

Covid-19 and Frontline Workers

Who is caring for the healthcare workers? 'Working together is how we are going to get through this. It’s not just a marathon, it’s a relay'.

PPS webinar Part 2: Small business, big risk

The risks that businesses face and how they can be dealt with are something all business owners should be well acquainted with

Call for applications for the position of GCRO executive director

The Gauteng City-Region Observatory is seeking to appoint a high-calibre researcher and manager to be the executive director and to lead it

DriveRisk stays safe with high-tech thermal camera solution

Itec Evolve installed the screening device within a few days to help the driver behaviour company become compliant with health and safety regulations

Senwes launches Agri Value Chain Food Umbrella

South African farmers can now help to feed the needy by donating part of their bumper maize crop to delivery number 418668

Ethics and internal financial controls add value to the public sector

National treasury is rolling out accounting technician training programmes to upskill those who work in its finance units in public sector accounting principles

Lessons from South Korea for Africa’s development

'Leaders can push people through, through their vision and inspiration, based on their exemplary actions'

Old Mutual announces digital AGM

An ambitious plan to create Africa’s biggest digital classroom is intended to address one of the continent’s biggest challenges — access to education

The best local and international journalism

handpicked and in your inbox every weekday