16 November 2018

South Africa: Malusi Gigaba and Brian Molefe At Centre of Massive Treasury Investigation Into Transnet Rail Purchase

analysis

A Treasury report into the purchase of 1,054 freight locomotives by Transnet, at R54-billion, a procurement larger than South Africa's arms deal, has found that former Public Enterprises minister Malusi Gigaba (who resigned as Home Affairs minister this week) acted outside his authority and compromised the process.

Gigaba's name is found 36 times in the pages of a scathing report into the rail purchase by Transnet which cost the state-owned transport giant billions more than it should have and is one factor in the pressure put on public finances.

He is also alleged to have illegally benefited from Transnet security while he was in Cabinet.

Then Home Affairs Minister Malusi Gigaba answers questions during his appearance before the parliamentary hearing into state capture on March 12, 2018 in Cape Town, South Africa. (Photo by Gallo Images / Sowetan / Esa Alexander)

The report, released on Friday morning, also finds that two former Transnet CEO's, Brian Molefe and Siyabonga Gama, "compromised the procurement process and benefited China South Rail (one of three winning bidders) by changing the...

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