Transnet Corruption Case Against Former Executives Postponed for Probes

The high-stakes corruption and fraud case involving former senior executives of Transnet, including its former Group Chief Executive Officer (GCEO) Brian Molefe, has been postponed to 6 October 2025 to allow for further investigations. The case, seen as a crucial piece in the broader state capture puzzle, continues to reveal the depth of mismanagement and financial malfeasance at the state-owned logistics giant.

Also in the dock are former Group Chief Financial Officer (GCFO) Anoj Singh, former CEO of Transnet Freight Rail (TFR) Siyabonga Gama, and former Chief Procurement Officer at TFR. The four face a total of 18 charges, ranging from fraud and corruption to violations of the Public Finance Management Act (PFMA) and the Companies Act.

Background: Market Demand Strategy at the Center of Allegations

At the heart of the case is Transnet’s controversial Market Demand Strategy (MDS) launched in 2011, which aimed to significantly increase the corporation’s freight capacity through investments in locomotives, rail infrastructure, ports, and pipelines. While the strategy was lauded on paper, it has now become emblematic of how strategic procurement initiatives were manipulated for private gain.

According to the Investigating Directorate Against Corruption (IDAC), the accused are alleged to have grossly abused their positions of authority by flouting procurement protocols to favor CSR, a Chinese manufacturer of locomotives, in a multibillion-rand deal.

Flawed Tendering: Inflated Locomotive Contracts Raise Red Flags

Henry Mamothame, spokesperson for IDAC, detailed how the accused circumvented due diligence procedures to unlawfully benefit CSR. This included:

• Awarding a contract for 95 locomotives originally estimated at R3.2 billion, which ballooned by over R231 million, reaching a total of R3.4 billion.

• Subsequent procurements for 100 and 1064 locomotives were also awarded to CSR under questionable circumstances.

  • The 100 locomotives deal swelled from R3.8 billion to R4.8 billion.

  • The massive 1064-locomotive deal jumped from R38.1 billion to an astounding R54 billion.

These inflated figures suggest a systematic effort to manipulate tender processes, with kickbacks and corruption likely at play.

“It was their duty to perform due diligence and ensure that Transnet got value for its money. They, however, are alleged to have enabled and ensured that costs were inflated and that their preferred bidder was unduly advantaged,” said Mamothame.

Bail and Legal Proceedings: Accused Out on R50,000 Each

All four accused were granted bail of R50,000 each and are currently out pending the continuation of proceedings in the Palm Ridge Specialised Commercial Crime Court. The case is set to return to court on 6 October 2025, during which further developments from ongoing investigations are expected.

The National Prosecuting Authority (NPA) and IDAC continue to compile additional evidence, possibly involving other parties who may have played supporting roles in the procurement irregularities.

State Capture Connections: Echoes from the Zondo Commission

The Transnet case is closely linked to revelations from the Zondo Commission of Inquiry into State Capture, where Transnet was identified as one of the most severely looted state-owned enterprises. The commission’s findings included:

• Widespread manipulation of procurement to benefit connected individuals and companies.

• The role of senior executives in undermining internal controls to enable looting.

• Billions of rands diverted from their intended purpose under the guise of development and infrastructure.

Mamothame reaffirmed the state’s view of the case as a “textbook example of state capture,” adding:

“The arrest of the accused highlights how persons in positions of trust and power allowed themselves to be part of a corrupt relationship that sought self-enrichment as opposed to the enrichment of the country and its infrastructure.”

Implications for Public Trust and State-Owned Enterprises

The Transnet corruption saga continues to cast a long shadow over public confidence in state-owned enterprises (SOEs). The scale of alleged graft not only eroded taxpayer funds but also delayed critical improvements in national infrastructure, undermining service delivery and economic competitiveness.

Public pressure is mounting for law enforcement to secure convictions in high-profile cases like this, with citizens and civil society organizations demanding accountability for years of unchecked looting.

 A Test of Institutional Reform and Justice

As the case proceeds, it is set to become a barometer of South Africa’s resolve to combat corruption and implement institutional reforms. It also places renewed focus on the role of prosecutorial agencies, oversight bodies, and public officials in restoring governance at state institutions.

The next court appearance in October is expected to reveal whether the prosecution has secured further critical evidence to advance the case. For now, the nation watches closely as one of the most prominent state capture cases unfolds in the courtroom.