Four former executives of South Africa’s struggling state-owned transport company, Transnet, were arrested and charged on Monday in connection with multi-million-dollar corruption allegations.
This high-profile case is linked to the widespread “state capture” scandal that plagued former president Jacob Zuma’s government between 2010 and 2018, which saw state resources plundered.
Transnet, which operates the country’s ports and freight rail, was a central focus of the corruption probe. The accused, who appeared in court on Monday, include former group chief executives Brian Molefe and Siyabonga Gama, as well as former heads of finance and procurement.
The National Prosecuting Authority (NPA) stated they face 18 charges, including contraventions of the Public Finance Management Act, fraud, corruption, and Companies Act violations.
The charges relate to tenders issued during a plan to expand and modernise South Africa’s rail infrastructure. In one instance, officials are accused of bypassing proper procedures to award a contract for 95 trains to an unqualified Chinese firm, with the contract allegedly inflated by $13 million.
Notably, Brian Molefe and Siyabonga Gama are currently serving as members of parliament for Zuma’s uMkhonto weSizwe (MK) party.
None of the accused has yet entered a plea. They were each granted $2,800 bail, and the case is scheduled to return to court in October.
The NPA emphasised that the arrests highlight how individuals in positions of trust “allowed themselves to be part of a corrupt relationship that sought self-enrichment as opposed to the enrichment of the country and its infrastructure.”
Transnet, which manages all of South Africa’s rail, ports, and pipelines, is currently burdened by significant debt, theft, and maintenance issues.
A 2022 report on state graft under Zuma identified Transnet as a “primary site” of state corruption, finding that contracts worth billions of rand were “irregularly awarded for the benefit of entities linked to the Gupta family,” Indian migrants with close ties to Zuma.
The four-year investigation concluded that Transnet became a “cash cow” for the Guptas. Both Molefe and Gama had denied wrongdoing when they previously testified before the commission and are also facing a separate graft case related to the procurement of over 1,000 trains.
