FORMER Transnet CEO Siyabonga Gama has been released on R50 000 bail.
He was arrested on charges of fraud, corruption and money laundering on Friday, 27 May, and appeared in the Specialised Commercial Crimes Court sitting in the Palm Ridge Magistrates Court on the same day.
Gama was arrested together with former Transnet acting group CFO Garry Pita, ex-group treasurer Phetolo Ramosebudi, Regiments’ Eric Wood and Trillian Asset Management director Daniel Roy by the Hawks and National Prosecuting Authority’s Investigating Directorate.
Roy and Pita were also granted R50 000 bail, Ramosebudi R25 000 and Wood R250 000.
The five men were arrested after they handed themselves over at Brackendowns Police Station. They were joining Gupta “fixer” Kuben Moodley in the dock, who was arrested last September at OR Tambo International Airport catching a flight to Dubai. This in connection with alleged money laundering of the proceeds from contracts improperly awarded by Transnet to Regiments and Trillian, as well as alleged theft of funds from the Transnet Second Defined Benefit Fund.
Gama told the court, in affidavit, that he could not afford to be a fugitive of justice as he had 11 children.
All the accused said they would not interfere with the investigation and witnesses.
“The accused stand accused of contravention of the PFMA, fraud, corruption and money laundering,” said NPA spokeswoman Sindisiwe Seboka.
Charges related to a request for proposal tender Transnet issued in 2012 to get transaction advisory services to secure funding for $2,5 billion (about R30 billion at the time) to fund the acquisition of the 1 064 locomotives deal.
Later in May 2015, Transnet appointed JB Morgan for advisory services. From July to October, the same officials started facilitating the termination of the JB Morgan contract, resulting in them appointing Trillian in October.
Then an invoice of R93,4 million was submitted by Trillian through Roy, serving as director. It was approved by Pita and Gama, and payment made in December to its account. Three days later, R74 million was paid to Albatime, owned by Moodley, for no apparent reason.
Prior to that, Transnet made payments to Regiments for R189 million in June 2015 for the alleged same services.
Chief Justice Raymond Zondo said in the state capture report that Gama was “centrally involved in key transactions that favoured the Gupta enterprise”, including controversial procurement of locomotives.
Zondo recommended the criminal prosecution of Gama and others for their part in the alleged corruption, adding that
Gama was “primary architects and implementers of state capture at Transnet”.
