Transnet board to sue former bosses

Transnet is gearing up to sue former CEO Brian Molefe and former CFO Anoj Singh for their involvement with a controversial locomotives tender, the City Press reports.

Sources told the City Press that the two former Transnet executives will be sued by the company for their roles in hiking the cost of the tender from R38.6 billion to R54.5 billion.

The company also plans to launch a civil suit against the Gupta-linked China South Rail, which received the biggest share of the tender.

The sources stated that Molefe, Singh, and Gupta-associate executive Salim Essa will soon receive letters of demand from the company – but Transnet board chairperson Popo Molefe refuted these reports.

The Special Investigating Unit (SIU) is continuing to probe the controversial locomotive tender under orders from president Cyril Ramaphosa to root out any evidence of unlawful activity.

Transnet CEO Siyabonga Gama has also been issued with a demand to pay back R151 million by the Transnet board, with the board adding that it does not expect to retain Gama in his current appointment.

Transnet’s contract with T-Systems also recently came under scrutiny following the publishing of evidence which showed bias towards it receiving a tender from Transnet.

Gijima scored the highest points in the Transnet tender process, and subsequently called for a criminal probe into the contract when it was not awarded the work.

Now read: Vodacom’s Transnet tender approved by High Court

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Transnet board to sue former bosses