Former Transnet Executives Arrested Over Alleged R93 Million Locomotive Scam
JOHANNESBURG – Former Transnet Executives Arrested Over Alleged R93 Million Locomotive Scam
Johannesburg, 30 June 2025— In a dramatic turn in South Africa’s ongoing battle against state capture and corruption, the National Prosecuting Authority’s (NPA) Investigating Directorate Against Corruption (IDAC), with support from the Hawks, has arrested two high-profile former Transnet executives.
Brian Molefe and Siyabonga Gama handed themselves over to authorities on Monday morning and are now facing charges related to a suspicious R93 million locomotive tender. The pair appeared in the Palm Ridge Magistrate’s Court later that day, joining other high-ranking former officials also implicated in the scheme .
? The Allegations
The heart of the case centers on an allegedly inflated advisory tender for the procurement of 1,064 locomotives. Initially valued at around R38 billion in 2012, the contract ultimately ballooned to over R50 billion — a spike attributed by investigators to irregular payments and an inflated contract structure npa.gov.za+8capeargus.co.za+8citizen.co.za+8.
Key allegations include:
- A R93.4 million payment from Transnet to Trillian Capital in December 2015. The bulk of this sum was routed to Gupta-linked entities mere days later news24.com+9citizen.co.za+9dailymaverick.co.za+9.
- Approval of these payments by executives including Gama and former CFO Garry Pita witness.co.za+10citizen.co.za+10dailymaverick.co.za+10.
- A forensic report by the Zondo Commission branding Molefe as a “primary architect” of the deal—accusing him of misleading both Transnet’s board and government ministers about the rapidly escalating costs npa.gov.za+12dailymaverick.co.za+12citizen.co.za+12.
- Flouting of procurement rules, including appointing unqualified bidders (like Chinese firms CSR and CNR), reportedly resulting in inflated contract values and irregular appointments thebulrushes.com+1npa.gov.za+1.
? Other Accused and Current Status
This arrest is part of a broader prosecution, involving four former Transnet executives appearing in court together:
- Brian Molefe – former Transnet Group CEO (2011–2015) and current MK Party MP en.wikipedia.org+12citizen.co.za+12dailymaverick.co.za+12.
- Siyabonga Gama – successor to Molefe, former Transnet CEO and Transnet Freight Rail head en.wikipedia.org+12capeargus.co.za+12witness.co.za+12.
- Anoj Singh – former Group CFO.
- Thamsanqa Jiyane – former Chief Procurement Officer in Transnet Freight Rail news24.com+9news24.com+9thebulrushes.com+9.
They face multiple charges, including fraud, corruption, money laundering, and violating the Public Finance Management Act and Companies Act. In total, there are 18 separate charges linked to various stages of the locomotive procurement process npa.gov.za+7thebulrushes.com+7news24.com+7.
On Monday, the court granted bail at R50,000 each, accompanied by strict conditions such as surrendering passports npa.gov.za+2dailymaverick.co.za+2npa.gov.za+2. Their next court appearance is scheduled for 6 October 2025 npa.gov.za+1thebulrushes.com+1.
? Broader Context: State Capture and the Zondo Commission
These arrests stem directly from scathing findings by the Zondo Commission of Inquiry into State Capture, which exposed how Transnet’s procurement mechanisms were hijacked to benefit Gupta-linked entities. The Commission urged criminal investigations against Molefe, Gama, and Singh.
One of the Zondo Commission’s top priorities was ending the “cycle of impunity” for senior officials who allegedly “looted” state-owned entities. The Transnet locomotive scandal was cited as a prime example of this abuse of power news24.com+12dailymaverick.co.za+12capeargus.co.za+12.
? Financial Impact and Fallout
The locomotive procurement debacle worsened Transnet’s already precarious financial state. Costs spiraled from R38 billion to over R54 billion, with millions diverted through suspicious shell companies such as Trillian and Albatime dailymaverick.co.za+4capeargus.co.za+4npa.gov.za+4.
Former Transnet board members confirmed that Molefe had falsified information to justify such excessive escalations—while Gama and others approved irregular invoices and payments lacking transparency or proper authority capeargus.co.za+1en.wikipedia.org+1.
Investigative reports also highlighted negative ripple effects—reduced rail capacity, diminished public trust, and increased reliance on road freight due to unreliable locomotive deliveries .
⚖️ What Lies Ahead
The case now shifts to the NPA’s readiness to prosecute. Observers stress the importance of maintaining momentum to prove that even well-connected individuals are subject to the rule of law.
IDAC spokesperson Henry Mamothame confirmed the arrests and indicated that a press release would follow the court appearance capeargus.co.za+5dailymaverick.co.za+5citizen.co.za+5.
The next major milestone will be the October 2025 court hearing at Palm Ridge Magistrate’s Court.
? Summary
| Key Details | Information |
|---|---|
| Who | Brian Molefe, Siyabonga Gama, Anoj Singh, Thamsanqa Jiyane |
| What | Arrested and charged with fraud, corruption, money laundering, and PFMA/Companies Act violations |
| Where | Palm Ridge Magistrate’s Court, Johannesburg |
| How Much | R93 million in suspicious payments; overall contract costs inflated from R38 billion to over R50 billion |
| Next Court Date | 6 October 2025 |
| Broader Context | State capture, Zondo Commission findings, and impact on Transnet |
➠ Bottom Line
The arrests of Molefe, Gama, Singh, and Jiyane mark a significant step in South Africa’s pursuit of justice in the wake of state capture. If the NPA successfully prosecutes this high-profile case, it could signal that accountability—even for powerful political and business figures—is no longer optional in South Africa.
