'Brian Molefe, others behind the capture of Transnet'
Transnet chairman Popo Molefe fingered three people whom he believes were the main actors the capture of the state-owned company.
He appeared before the commission of inquiry into state capture on Tuesday.
He told the commission that former CEO's Brian Molefe and Siyabonga Gama, and former CFO, Anoj Singh, were responsible for the irregular contracts which saw the looting of at least R7.2 billion.
Molefe said the three, alongside Igbal Sharma, who is a close associate of Gupta linked Salima Essa, signed numerous irregular contracts which pointed to a sophisticated network of corruption.
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"There was a clear pattern of how the capture was implemented. The starting point is to make sure you capture the decision makers at the top and identify all other strategic positions which played a critical role in the allocation of budgetary resources of the company. So you would capture the group CEO, CFO, treasurer, the chief procurement officer and key people in operating divisions."
He said because the people captured had the right qualifications and were well-respected, there was no obvious need for concern.
"They collude among themselves, they weaken the governance systems and identify high-value tenders because that is where big monies are. And once those tenders are issued, they would constantly review and extend the scope of the contract which would mean an increase in capital allocation for that contract.”
He said those involved in capturing Transnet treated the company as a piggy bank, but took out money more than they put in.
Molefe mentioned a contract for 1100 locomotives with a company linked to the Guptas called China Rail Agency. He said the company was paid R700 million in advance in contravention of both Treasury and Transnet regulations.
He said the new board has managed to recover R618 million from this company, which has been uncooperative.
Transnet is working with the Special Investigative Unit and the Hawks to recover more money, some of which have left the country.