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Transnet Turned “Cash Cow” for State Capture with 72% Tainted Contracts

February 02, 2022

By Naadiya Adams

State capture has been thrust back into the limelight following the release of part two of the Zondo commission’s report, which was handed to President Cyril Ramaphosa on Tuesday.

Taking center stage in the latest report is malfeasance at state-owned enterprises Denel and Transnet.

The report sought to confirm that State Capture started at Transnet in 2009 with the resignation of Maria Ramos from her group CEO position “and the election of Jacob Zuma as President of the Republic”, reads the 505-page report.

In an interview with Radio Islam, the Organization Undoing Tax Abuse’s Wayne Duvenage says the writing is on the wall and he would like to see the law take its course.

“He [Jacob Zuma] was the kingpin and you could see his lieutenants all around him were putting in place various people in positions of power at SOEs to make decisions to move money offshore into the hands of the Guptas and there’s no denying that,” explained Duvenhage.

Former CEO at Transnet, Brian Molefe has been implicated for a second time with recommendations that he be investigated and possibly prosecuted for corruption. He is one of three key players implicated at Transnet alongside Jacob Zuma.

In the report, Molefe is described as one of the “primary architects and implementers of State Capture at Transnet”, along with former executives Anoj Singh and Siyabonga Gama.

According to the report, South Africa’s cargo logistics company had become “the primary site of State Capture in financial terms” stating that “State Capture at Transnet involved the systematic scheme of securing illicit and corrupt influence or control over decision-making”.

It was revealed that 72.2% of contracts that were tainted by state capture originated from the freight agency turning the agency into what has been described as a “cash cow” for those involved.

“We are hoping that the NPA with the first report last month, and now this one is going to start acting and moving faster than what they have, we’ve seen some changes with Herman Cronje moving out,” said Duvenhage.

He says an integral part of prosecution authorities is strong leadership and he believes the time has come for the NPA, where they take people to book no matter who it is.

“In Denel’s case, you know, highly sophisticated technology and intellectual property just wasted because people have no regard for the country’s interests in the ownership of these enterprises, it was all about money and getting the value of these enterprises, explained Duvenhage.

Part one was handed over to the President on the 4th of January and the final part of the report is expected to be presented to Ramaphosa by the end of the month.

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