The Department of Public Enterprises (DPE) has welcomed the arrest and courtroom look of former Transnet executives Brian Molefe and Anoj Singh on prices associated to fraud of R398.4 million together with corruption.
It says the injury inflicted on state-owned enterprises (SOEs) remains to be felt at current and has disadvantaged many South Africans of integral companies which can be offered by absolutely useful state entities.
Read: Brian Molefe, Anoj Singh and Regiments administrators charged on R398m Transnet fraud
This comes after Molefe and Singh – the previous group CEO and former CFO of Transnet, respectively – appeared within the dock, along with Regiments Capital administrators Niven Pillay and Litha Nyhonhya on Monday (29 August).
Molefe, Singh and their co-accused are charged with contravening the Public Finance Management Act (PFMA) and fraud, whereas Pillay and Nyhonhya are additionally going through cash laundering prices.
The DPE says the arrests point out that legislation enforcement businesses are following up on key suggestions of the Zondo Commission of Inquiry into allegations of state seize, corruption and fraud within the public sector.
Read: Brian Molefe ordered to repay R10m to Eskom Pension and Provident Fund
“Their appearances go a long way to communicate the message to all South Africans that no stone will be left unturned until those that were complicit and conspired to damage state-owned enterprises as part of the state capture project are brought to book,” provides the DPE.
Minister Pravin Gordhan says the arrests assert that authorities is not going to tolerate corruption and fraud at SOEs and within the public sector.
“There [are] no longer ‘fake news’ narratives to avoid accountability. We are now waiting for the state to prove its case so that we can finally see people being locked up,” he provides.
Reflecting on the report on Transnet, the DPE recalled that the Zondo Commission advisable legislation enforcement businesses conduct additional investigations as could also be obligatory for a potential prosecution of Molefe, Singh, former Transnet Group CEO Siyabonga Gama, former Transnet CFO Garry Pita and former Transnet CEO Thamsanqa Jiyane on prices of corruption and racketeering for money funds acquired throughout Gupta compound visits between 2010 and 2018.
The Zondo report additional advisable that legislation enforcement businesses, amongst others, conduct investigations with regard to:
- The potential prosecution of any Transnet official on a cost by way of Section 86 of the Public Finance Management Act (PFMA) by wilfully or grossly negligently contravening Section 51 of the PFMA by wrongfully deviating from the analysis standards of the instruction observe of the National Treasury of 18 July 2012 and provisions of laws 5 and 6 of the Preferential Procurement Policy Framework Act (PPPFA) laws regarding the analysis of the bids for 1 064 locomotives
- The potential prosecution of any member of the negotiations group that performed the publish tender negotiations for Transnet in relation to the procurement of the 1 064 locomotives on corruption prices or by way of part 86(2) of the PFMA, by performing corruptly or not performing in one of the best pursuits of Transnet in managing its monetary affairs by agreeing to the cost of extreme advance funds to China North Railway (CNR) and China South Railway (CSR) and never complying with native content material necessities of the RFPs (request for proposals) of the tender in relation to the transaction
Read: With the arrest of Molefe and Singh, legislation enforcement has discovered its mojo
“The road to fix the damage left by former executives to our SOEs has been hard and frustrating, punctuated by denialism and the fake news narrative and misinformation campaigns,” provides the DPE.
“However, we have worked diligently to ensure we turn around the SOEs so that they become instruments of transformation and provide the much-needed services to all South Africans.”
Nondumiso Lehutso is a Moneyweb intern.
