South Africa: Former Transnet Executive Loses Bid to Save Frozen Assets

18 November 2020

The Special Tribunal has confirmed a preservation order against former Transnet Executive Herbert Msagala.

Msagala lost the battle with the Special Investigating Unit (SIU) to have a preservation order, including movable and immovable properties against him, not be made permanent.

The Special Tribunal also declared that assets belonging to Msagala be forfeited to the State to an extent not exceeding R18 460 020, 02.

The assets include 35 luxury vehicles, five properties which includes two farms, and houses in gated estates.

The Special Tribunal further ordered Msagala and his investment trust and family trust, which were cited as respondents, to pay for the costs of proceedings on an attorney and client scale, including the costs of SIU and Transnet's two counsel.

The interdict imposed by the Special Tribunal on the Transnet Pension Fund not to pay out the pension of Msagala remains in force and is extended until the conclusion of the action proceedings against Msagala in the Tribunal.

The SIU approached the Special Tribunal seeking a final forfeiture of assets which were attached through a preservation order issued on 30 July 2020.

The assets are proceeds of corrupt and criminal activity.

Msagala was engaged in criminal activities with IGS Consulting Engineers, a company which received dubious tenders from Transnet Capital Projects when Msagala was executive.

Head of the SIU, Advocate Andy Mothibi welcomed the order saying this will send a clear message to all those who commit acts of corruption, fraud, maladministration and malpractices.

"As [the] SIU, we will do our best within the law to ensure that they don't benefit from their acts of malfeasance and we will take steps such as demonstrated in this order to recover stolen money and assets back to the State," Mothibi said.

The SIU is a forensic and litigation agency tasked with the role of investigating serious malpractice, malfeasance and maladministration in relation to the administration of State institutions, State assets and public money, as well as any conduct which may seriously harm the interest of the State and the public.

Fraud and corruption allegations can be reported on the following platforms: or hotline 0800 037 774.

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