South Africa arrests former top executives of state-owned logistics firm Transnet

By Hassan Isilow

JOHANNESBURG (AA) - Police in South Africa on Monday arrested several former executives of the state-owned freight rail and ports operator, Transnet, on charges of corruption and Fraud.

The former executives were arrested by the elite police unit, the Hawks, which targets organized crime, economic crime, and corruption among others.

The arrests follow a recommendation by a judicial commission of inquiry that investigated corruption, also known as “State Capture.”

The commission implicated former Transnet executives in cases of racketeering, fraud and mismanagement at the parastatal and recommended they be investigated and prosecuted.

The charges are in connection to a 2012 contract of 93 million rands ($5.5 million) which Transnet paid to Trillian Asset Management for organizing a 30-billion-rand club loan to help buy 1,064 locomotives.

Trillian had reportedly done nothing to deserve the fee but went ahead and invoiced the logistic firm.

Transnet's former CEO Brian Molefe and former head of finance Anoj Singh along with two others appeared in the Palm Ridge Specialized Commercial Crimes Court near Johannesburg on Monday and were released on 50,000-rand bail each.