Transnet chairperson Popo Molefe has taken the stand before the judicial commission of inquiry into state capture, as the inquiry turns its attention to probing allegations of fraud, corruption and kickbacks at the state-run freight rail group.

PM: We opened up to Parliament, they embraced our report. They said, they wish this board was here 3 years ago.

PM: The portfolio committee refused to listen to us if Mr Gama was there. They refused to listen to Transnet until Transnet dealt with the issues of corruption and taken action against those accused of wrongdoing. There was lack of transparency from the board of Transnet.

Managers at Transnet also abused a system of confinement - by creating circumstances of urgency and wrongfully extend the terms of expiring contracts, Molefe said. @Fin24 @teamnews24
— lameez omarjee (@LameezOmarjee) May 7, 2019

Molefe says there was a culture of signing off contracts - to values of between R500 000 and R1m, without consultation with the board. This opened a space for many contracts to be signed in this manner and for contracts that favoured certain individuals.

Molefe says that procurement processes were flouted and the skills base at the company were weakened. He describes it as "sophisticated operation", @Fin24 @teamnews24
— lameez omarjee (@LameezOmarjee) May 7, 2019

Popo Molefe says Brian Molefe's appointment set off a process whereby the interests of a group of people seeking to acquire wealth quickly would score contracts from Transnet. It resulted in the weakening of governance at Transnet.

Popo Molefe now discusses the appointment of Brian Molefe as Transnet CEO in 2011. He says it is strange that The New Age, a Gupta-owned newspaper - had already published Brian Molefe would be appointed the CEO of the state enterprise. @TeamNews24
— lameez omarjee (@LameezOmarjee) May 7, 2019

PP: How was it that these circumstances were not detected and acted upon?

PM: It is very difficult for me to say in detail, but to say that it was a sophisticated operation, starts off with people who are known to have served the country who have the qualification.

Molefe likens the reforming of state enterprises- the vehicles of state capture - to the reforming of state institutions when Nelson Mandela became President in 1994. @fin24 @teamnews24
— lameez omarjee (@LameezOmarjee) May 7, 2019

Molefe says that the appointment of Cyril Ramaphosa as President and the new dawn he announced, was the start of acknowledging things had been going wrong in the country and that corruption had become endemic.

ICYMI:

Transnet appoints new acting CEO

Transnet has said it will not renew the six-month contract of acting CEO Tau Morwe, and will appoint a new acting CEO instead.

According to a statement from Transnet, issued late on Wednesday evening, Morwe's contract comes to an end on May 3, 2019. Transnet did not say why Morwe's contract was not renewed or extended.

PP: 15 Feb announcement by President

PM: Came into office as new board, had to consider in which context new board is being appointed.

Molefe will inform the inquiry on the findings of the board, since its appointment at Transnet in May 2018. He will also share remedial actions taken to "correct the wrongs" found at the state enterprise. @teamnews24 @fin24
— lameez omarjee (@LameezOmarjee) May 7, 2019

Molefe says Transnet is a very complex organization and play an important role in the economy. #StateCaptureInquiry
— State Capture Commission (@StateCaptureCom) May 7, 2019

PM: In the context of Transnet, which is a vehicle owned by the state, it is accepted that it is managed in a way that the sources are used for the disadvantaged of the country, the inequalities of women, the youth, economic empowerment and participation, the disabled.

Molefe says taking the position as Transnet chair was an opportunity for him to join others working selflessly to turn the organisation around, so that it could serve developmental objectives of the country. @Fin24 @teamnews24
— lameez omarjee (@LameezOmarjee) May 7, 2019

WATCH LIVE: Brian Molefe's appointment at Transnet under scrutiny at #StateCaptureInquiry

The state-run freight rail agency, Transnet, is still under the spotlight at the judicial inquiry into state capture.

The circumstances around the 2011 appointment of former Transnet CEO Brian Molefe will be probed by the judicial commission of inquiry into state capture over the next two weeks.

The commission is investigating allegations of state capture, corruption and fraud.

WATCH LIVE:

Molefe says his appointment at Transnet was done in view of good governance, responsible use of public funds and ethical leadership. #StateCaptureInquiry
— State Capture Commission (@StateCaptureCom) May 7, 2019

PM: I think for approximately 5 decades of my life, I was involved in the struggles of the exploitation of my people. In doing so, I continued to be inspired by the values and principles of the Freedom Charter.

Molefe said he was inspired by the Freedom Charter to take the position as chair at Transnet. Revelations of corruption showed that wealth was being shared among a small group of people - and not all the people of SA. @teamnews24 @fin24
— lameez omarjee (@LameezOmarjee) May 7, 2019

The board had decided not to extend former acting CEO Tau Morwe's contract.

#StateCaptureInquiry Molefe says his statement will cover what the Transnet board discovered when it was appointed and the remedial actions it took to address the issues it found.
— Jacaranda News (@JacaNews) May 7, 2019

His evidence is being led by advocate Paul Pretorius.

Transet chairperson, Popo Molefe has been sworn in.

Now dealing with administrative details.

Transnet chair Popo Molefe set to take the stand at state capture inquiry

Transnet chairperson Popo Molefe is set to give evidence before the judicial commission of inquiry into state capture on Tuesday, as the inquiry turns its attention to probing allegations of fraud, corruption and kickbacks at the state-run freight rail group.

Molefe is the sole witness expected to give evidence on Tuesday, according to the commission's spokesperson Mbuyiselo Stemela.

News24.com | LIVE: Contracts signed off at Transnet without consulting the board - Molefe testifies #StateCaptureInquiry

LIVE: Contracts signed off at Transnet without consulting the board - Molefe testifies #StateCaptureInquiry