Former public enterprises minister Malusi Gigaba is expected to appear in court over charges related to procurement at Transnet.
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- Former Public Enterprises Minister Malusi Gigaba said the National Prosecuting Authority had informed him that he was required to attend court.
- Investigating Directorate Against Corruption spokesperson Henry Mamothame said the appearance would not take place on Friday and that Gigaba was “engaging IDAC”.
- Gigaba was one of the ministers implicated in state capture by the Zondo Commission.
Former public enterprises minister Malusi Gigaba is expected to appear in court on charges related to procurement at Transnet.
But, according to the National Prosecuting Authority’s Investigating Directorate Against Corruption (IDAC) spokesperson Henry Mamothame, the appearance will not take place on Friday.
He said Gigaba had not been placed under arrest, but was “engaging IDAC”, and did not specify when he would appear.
“IDAC will not be commenting any further on the matter,” Mamothame said.
On Friday morning, Gigaba said: “My conscience is clear regarding my conduct in office – my actions have always been guided by policy, process, and the values of accountability and service.”
News24 understands the charges relate to the acquisition of 1 064 locomotives during his term as the Minister of Public Enterprises from China South Rail (CSR), a Chinese state-owned company.
News24 previously reported that, in return for Transnet contracts worth R41.9 billion, around R9 billion in kickbacks were allegedly pledged to Gupta-linked entities. The bribes were reportedly aimed at influencing tender outcomes.
CSR also failed to meet its local content obligations, which required 60% of locomotive components to be sourced locally to support South Africa’s economy. CSR allegedly achieved only 33% local content in delivered locomotives.
READ | Ex-Transnet bosses Molefe, Singh and Gama arrested for allegedly corrupt locomotive tender
Gigaba was implicated in state capture by the Zondo Commission, News24 further reported.
The second volume of the Zondo Commission’s report described Gigaba and Lynne Brown as instrumental in facilitating the Guptas’ schemes to control and loot state enterprises, such as Transnet, Eskom, and Denel.
Gigaba was singled out for his “close relationship” with the Guptas, which he tried to downplay during his testimony.
The commission found evidence of extensive and recurring contact between Gigaba and the Gupta family, casting doubt on his credibility.
He is accused of appointing key Gupta allies to significant roles, such as recommending Brian Molefe as Transnet CEO, even though Molefe was not the top candidate. These appointments appear to have been orchestrated to bolster the Guptas’ state-capture agenda.
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The commission recommended investigations into Gigaba for corruption and racketeering based on these findings.
The report highlights the deep involvement of both ministers in supporting and enabling the Guptas’ state capture operations, raising concerns about their abuse of power for personal gain.
News24 understands that Gigaba is expected to appear in the Palm Ridge Specialised Commercial Crime Court.
He is expected to appear in the Transnet case.
In that case, Molefe and his co-accused face 17 charges that include the Contravention of the Public Finance Management Act (PFMA), fraud, corruption, and the Contravention of the Companies Act.
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Molefe, who is the former group chief executive officer (GCEO) of Transnet, is charged together with Anoj Singh, a former Group Chief Financial Officer (GCFO), Siyabonga Gama, a former chief executive officer (CEO), and Thamsanqa Jiyane, who was the chief procurement officer (CPO) in the Transport Freight Rail (TFR) division within Transnet.
Their court appearance emanates from the period in which Transnet engaged in the process of acquiring locomotives to expand and modernise the country’s rail infrastructure, to which they allegedly flouted the tender process.
They did this by irregularly awarding three contracts to provide Transnet with more than 1 000 locomotives, resulting in a loss of millions of rands to Transnet. Their R50 000 bail was extended.