Court papers show Transnet executives 'colluded fraudulently'

Court papers filed by Transnet to recover R189m in inflated payments from Gupta-linked Regiments Capital have revealed collusion by senior executives of the state-owned firm, in allowing the transaction.

Former Transnet CEO Siyabonga Gama, ex-chief financial officer Anoj Singh, Robert Ramosebudi who resigned in October as group treasurer and Garry Pita who vacated his chief financial officer position in April, are said to have “colluded fraudulently to cause Transnet to transfer to Regiments an over-payment of R151m”.

• READ: Transnet wants former executives, Gupta-linked company to pay back the money

The papers filed in the South Gauteng Court on Thursday, list among other allegations the following eight transgressions by the executives:

• Singh, Gama, Pita and Ramosebudi recommended that the board acquisitions and disposal committee approve the appointment of Regiments on a risk sharing agreement, despite the company not being on risk, to provide transaction advisory services related to the locomotives tender. 
• Singh and Pita recommended in a memorandum dated May 19, 2015 that Gama approve the payment of R166m (excluding VAT).
• They knew or should have known that Regiments was owed R15m not R166m.
• Regiments on June 3, 2015, submitted an invoice for payment of R166m (excluding VAT), which was signed by Singh on June 11, 2015.
• Gama who was then chief executive of Transnet Freight Rail signed off the R166 approval of Regiments payment on July 16, 2015.
• He presented to employees responsible for paying creditors that Transnet owed Regiments R166m for supplying advisory services.
• Despite a demand dated October 23, 2018, the defendants are said to failed to and/or refused to pay Transnet the sum of R189m.
• Singh, Gama, Ramosebudi and Pita breached their fiduciary duties by recommending and/or procuring or permitting the overpayment and they should have foreseen that their conduct would result in Transnet sustaining losses.