Ex-Transnet official in court for R160m tender fraud
Former Transnet Group Capital CEO Herbert Msagala has been charged with fraud, corruption, theft and money laundering in connection with five tenders worth over R160 million.
He appeared in the Johannesburg Specialised Commercial Crime Court on Monday and was subsequently released on R60,000 bail.
Msagala allegedly received kickbacks from IGS Consulting Engineering, a company that was awarded the tenders back in 2015.
This was for the maintenance and upgrading of the high-pressure pipe infrastructure that transported different fuel products from Durban to Gauteng under the New Multi-Product Pipeline (NMPP) project.
NPA Gauteng spokesperson Phindi Mjonondwane said the accused allegedly unduly benefited from IGS kickbacks worth over R26 million that he reputedly used to purchase various properties and vehicles.
"The case stems from investigations conducted by the Special Investigating Unit into irregularities of five contracts worth over R160 million that were awarded to IGS Consulting Engineering firm by TGC between May and August 2015.
"Msagala is charged together with two individuals and the entity, IGS. The individuals are yet to appear in court as the Directorate for Priority Crime Investigation is still tracing their whereabouts," she added.
The case was postponed to November 19.