AS IT HAPPENED: 'This business was on the edge of a cliff' - Molefe says of Transnet at state capture inquiry

2019-05-07 10:04

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.

[Live stream courtesy of SABC]

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Raymond Zondo chairs the state capture inquiry

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Last Updated at 05:27
07 May 16:29
Transnet will be doing interviews for nine strategic positions in the next three months, says Molefe.

07 May 16:25

07 May 16:24
In his concluding remarks, Molefe says: "Corruption in our country and society is endemic. If we look at society and the many instances of corruption, you realise that this corruption has no holy cows. It is threatening to become part of the culture of our society."

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PM: Where monies have moved around, even if Transnet knows where the money is, Transnet has no authority to subpoena searches. The law enforcement agencies are able to. We can't do so. 

07 May 14:53

07 May 14:40
PM: We have a responsibility as the board to government, Parliament to resolve this. We want to rapidly resolve this matters. 

07 May 14:40

07 May 14:29
PM: China South Rail, stands to be a large contributor in money movement and has been the least cooperative with the new board.

07 May 14:22

07 May 14:21

Popo Molefe slams Gigaba for appointing 'architects of capture' in Transnet 'horror show'

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. 

Since his appointment in May 2018, Molefe and the group's new board have said they are working to clean up the state-owned enterprise.

In December 2018 Molefe told Fin24 that “the tentacles of state capture and the claws of corruption run deep” adding it was hard to say when the rot would be eradicated.

07 May 14:20

07 May 14:14
PM: Every time there is failure to observe rules or regulations, Transnet loses money. 

07 May 14:11

07 May 14:09

We reconvene.

Molefe on locomotives.

PM: Public procurement in SA is governed by section 217 of SA, also public management act. The process has got to be fair, just, cost effective, amongst others. Those clearly were ignored.

07 May 12:59
We break for lunch.

07 May 12:54

07 May 12:48
PM: Transnet in resolving these matters will have to deal with impact of failures Transnet has had on innocent businesses.

07 May 12:36

Molefe's appointment at Transnet opened the door for corruption - board chair

The capture of Transnet was a "sophisticated operation" in which key individuals responsible for making strategic decisions were targeted in an effort to benefit the interests of a few, board chairperson Popo Molefe said.

Molefe testified before Justice Raymond Zondo's commission of inquiry into state capture. He shared details on the wrongs the Transnet board had found at the state rail, port and pipeline company after its appointment in May 2018.

07 May 12:35
Molefe says he has never been called by the Guptas- probably because they didn't know his name.

07 May 12:35

07 May 12:34
Justice in Transnet was applied subjectively. That person would be charged but not enough evidence would be made available during disciplinary hearings. Evidence would be withheld.

07 May 12:32

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Molefe says the new board is trying to encourage transparency, so that employees cannot be fearful to speak up.

07 May 12:28

07 May 12:28
PM: You don't debate with your superior, you just obey orders. That was the culture. 

07 May 12:21

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PM: They treated Transnet as their little piggy bank, but taking out more than what they put in. 

07 May 12:18

07 May 12:18
Molefe said that the new board found a "horror show" when it was appointed to Transnet in 2018. 

07 May 12:14

07 May 12:13

ICYMI: Molefe refers to an example of how former CEO Siybaonga Gama had his dissertation written by a McKinsey employee, at the time McKinsey was a service provider to Transnet.

READ: McKinsey admits helping Transnet CEO with MBA, but Gama says only aid was editing

Global consultancy McKinsey & Co on Monday admitted to helping Transnet Group Chief Executive Siyabonga Gama prepare a part of his thesis to obtain an MBA, but Gama told Fin24 the help had amounted to nothing more than checking language.

"We informed the South African authorities last year that our internal investigation found evidence that a McKinsey partner coordinated research support and used company resources to help draft some of a client executive's MBA coursework," a McKinsey spokesperson told Fin24. 

07 May 12:07

07 May 12:07
PM: There is a state of paralysis that has set in.

07 May 12:02

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