WRAP | Brian Molefe: I know nothing of money laundering, I don't know Salim Essa

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09 March 18:06

Proceedings have ended for the day. 

09 March 16:18

Proceedings adjourn for a short break.

09 March 15:41

Molefe: "Contracts were awarded in terms of Transnet policy, and the grounds for confinement were clearly set out in the memorandum. However, what was not shown is that part of the payments would go to Essa, or used for money laundering." 

09 March 15:36

Myburgh puts it to Molefe that evidence on money flows from Gupta entities shows that money from Regiments contracts with Transnet went to Salim Essa and flowed to Homix, which was used to launder money.

Molefe denies knowledge of money laundering activities, states that he does not know Salim Essa.

09 March 15:26

Molefe explains the reasoning behind the confidential confinement of the contracts that he approved.

On the issue of confinement, he says McKinsey had done the work before for Transnet and that a new entrant would have been required to develop their own models or use McKinsey's model.

Advocate Myburgh says Volmink testified that while there was a good case for the confinement of the contract, Transnet failed to make a good case for their confidentiality.

"He is entitled to his views," Molefe says in response.

09 March 14:58

In his evidence, Mark Volmink, Transnet head of governance said there was "no proper ground" for the confinements. 
Transnet procurement process an 'aberration', state capture inquiry hears

09 March 14:40

Molefe is now drawn to a number of contracts awarded to McKinsey and Regiments over a short period of time in 2014. The contracts were awarded on a confined basis without competitive bidding

Advocate Myburgh says, on 3 April 2014, McKinsey and Regiments were awarded a coal line contract, on 1 April 2014, the companies were awarded the Kumba Iron Ore contract, followed by a manganese and a pipeline (NMPP) contract on 3 April 2014.

09 March 13:13

The commission adjourns for lunch. Proceedings will resume at 14:00.

09 March 13:10

Molefe says although he has been sent notices by the commission to respond to various evidence against him, his name has not been linked to any wrongdoing.

"I can't recall being implicated in wrongdoing.... people have talked about me."

09 March 13:00

Regiments were paid R166 million for their role in arranging the loan. 

Molefe says he can't comment on the Regiments fee payment as it was entered into after he had left Transnet. 

09 March 12:53

Advocate Myburgh now moves to events around the Transnet $2.5 billion loan from China Development Bank. The loan agreement was entered into in 2015.

09 March 12:21

Myburgh draws Molefe's attention to a memorandum drafted by a senior official in the Transnet procurement department, described as Mr Thomas. He had written a memorandum to the chief financial officer Garry Pita objecting to the R7.8 million payment.

Molefe says the memorandum did not reach him.

"Now I feel that perhaps if I had seen Mr Thomas' memorandum, I would have reconsidered."

But Molefe feels that the R2.8billion savings that Regiments earned Transnet were "over and above what needed to be done".

Transnet CFO Garry Pita resigns

09 March 12:06

Molefe's legal representative objects to Myburgh's badgering- says his client has already stated that he does not know Salim Essa.

He says his client has been "patronised" and should not be harassed by the evidence leader in his bid to extract answers from him.


09 March 12:02

Molefe defends the Regiments additional payment.

"This is a decision that would be taken by a CEO in my position, there was nothing out of line about it."

Myburgh puts it to Molefe that he knew where the money paid to Regiments ended up.

Molefe says he does not know where the money went after it was paid to Regiments.

"The money was paid to Salim Essa," said Myburgh.

Molefe objects to Myburgh's submission. 

Essa is a business associate of the Gupta's.

"My evidence is that I did not know," says Molefe in response to Myburgh's submission.

09 March 11:54

Advocate Myburgh outlines the change in the Remuneration Model memorandum for Regiments which was approved by Molefe.

The model recommended an additional payment in fees of R78.4 million to Regiments. Molefe says this was due to the fact that Regiments has saved Transnet R2.8 billion.

"These people saved us R2.8bn, so we were willing to incentive them," said Molefe.

Advocate Myburgh describes the payment as "generous".

"It was generous of you, there was nothing in law that compelled you to do this," asked Advocate Myburgh.

09 March 11:32

Molefe's legal representative informs the commission that his client has no problem sharing the notes. But the notes are only in soft copy and cannot be easily shared.

But Molefe keeps scrolling through the electronic notes on his phone to answer questions, contrary to his earlier commitment that he will no longer use them.

09 March 11:20

Molefe addresses the issue of conflict of interest that arose in the McKinsey consortium contract for advisory services in the 1064 locomotives contract.

McKinsey's BEE partner, Letsema, were later dropped and replaced by Regiments Capital.

Molefe says Letsema were dropped due to a conflict of interest that was picked up by Transnet.

09 March 11:13

Brian Molefe begins his evidence, he picks up from the Transnet contract with McKinsey.

Evidence leader Advocate Anton Myburgh raises concern over Molefe's constant reference to notes written on his phone. He says everyone must have access to the notes.

Molefe says he compiled the notes to help him jog his memory. He reluctantly agrees to stop glancing at the notes. 

09 March 10:46

Zondo has ruled that Gama's application for cross-examination must be deferred until he has given his own evidence. Gama, a veteran Transnet executive, was head of the company's Freight Rail division before his appointment as CEO in 2015. 

He replaced Brian Molefe who had been seconded to Eskom.

09 March 10:27

Deputy Chief Justice Raymond Zondo is currently hearing an application by former Transnet CEO Siyabonga to cross-Examine Bowman Gilfillan Christopher Todd. 

Todd gave evidence before the inquiry in October 2020 and was involved in the disciplinary processes in 2010 that found Gama guilty of gross misconduct.

09 March 09:27

Transnet's former CEO Brian Molefe is set to continue his evidence before the state capture inquiry on Tuesday. Molefe was Transnet CEO from February 2011 until his secondment to Eskom in April 2015

Under Molefe's leadership, Transnet in 2012 embarked on the controversial procurement process of for 1 064 locomotives. The contract ballooned from R38.6 billion in 2013 to R54.5 billion. The issuing of the contract has been plagued by allegations of kickbacks and financial irregularities, and Transnet has launched a legal bid to have it declared unlawful.

Molefe is one of the former executives that Transnet in January 2019 served with summons in a bid to recoup some of the money spent on the locomotives contract.

WRAP | The person who betrayed me is the public protector, says Brian Molefe

09 March 09:27

On Monday Molefe maintained that he felt betrayed by former Public Protector Thuli Madonsela whose report made damning findings against him.

He told Deputy Chief Justice Raymond Zondo that guilt has "already been ascribed" before proper process has been undertaken.

He also said that the Guptas "may have done what they did", but he was not part of it.

Brian Molefe: I have no regrets that I knew the Guptas
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