State Capture: More Transnet-related evidence from Brian Molefe

The State Capture Commission has been zeroing in on dodgy contracts at Transnet, under the guidance of Brian Molefe as CEO

The Eskom CEO role is up for grabs. It may be the toughest job in South Africa. How much would you expect to be paid to fill the hot seat? Photo: Gallo Images / City Press / Lucky Nxumalo

Transnet’s former CEO Brian Molefe is expected back at the State Capture Commission on Wednesday, 10 March 2021, where he will continue to give evidence pertaining to his tenure at the freight company and some of its questionable business dealings.

Molefe has spent more than a week appearing at the commission, having been considered a central figure who allegedly played a key role and aided the controversial Gupta family in scoring lucrative contracts at Transnet and Eskom – state-owned entities he’s both led.

Gupta-associate scores millions from Transnet – and Brian Molefe ‘didn’t know’

Just recently, Brian Molefe told the State Capture Commission he did not know that half of a R78 million payment he had approved for Regiments Capital, would eventually end up in the hands of Gupta-linked businessman Salim Essa.

Defending the decision, Molefe said it made business sense at the time as the company had managed to save Transnet R2.8 billion.

“Regiments saved us R2.8bn and the memo was that we pay them R78m,” said Molefe.

“One of the things that was uppermost in my mind was, if these people saved us R2.8bn you have to incentivise them to do more. It is a well-known principle in business.”

READ: Brian Molefe ‘left Eskom because of Madonsela’s report’

Molefe trusted Anoj Singh as his CFO

Regiments had secured a contract worth R51 million to provide advisory services for Transnet in its procurement of 1,064 locomotives. However, the deal then changed to a whopping R115 million, after then Transnet CFO Anoj Singh managed to convince Molefe to approve a pay increase for the company. The major bone of contention was the fact that the payment of the funds was not stipulated in Transnet’s contract with Regiments.

Molefe’s defence was that he trusted Singh’s word as his CFO.

“The fact that Mr Singh had recommended it was sufficient to me,” he said.

The commission’s evidence leader advocate Anton Myburgh then put it to the former CEO that essentially half of the payments from Transnet wound up with a shell company owned by Essa.

“I’m not here to answer what is in Mr Myburgh’s head or confirm his conspiracy theory. I’m here to give evidence and my objective evidence is that I approved this because there is R2.8-billion on the table and I did not know that Mr Essa was involved,” said Molefe.