Former Transnet Executive Ordered to Repay R26 Million by Special Tribunal
- Former Transnet executive Herbert Msagala has been ordered to repay over R20 million he received in undue profits during his tenure
- Msagala was found guilty of unduly giving contracts to IGS Consulting in regard to a project he was managing
- He spent the money he received from the unethical relationship with IGS on properties and vehicles
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JOHANNESBURG - Former head of Capital Projects at Transnet, Herbert Msagala has been mandated by the Special Investigating Unit's Special Tribunal to pay back over R20 million in undue profits to the company.
A ruling by the Tribunal found Msagala guilty of secretly pocketing profits and that he had an unethical relationship with the company's supplier, IGS Consulting, according to eNCA.
IGS's sole director Sipho Sithole, the Msagala Family Trust, Msagala Residence Trust and Msagala's co-trustee in the trusts, Roberto Jorge Velosa, were also ordered to repay Transnet.
Source: Getty Images
Msagala's unethical inappropriate relationship with IGS Consulting was revealed after an investigation was conducted by the SIU. The SIU investigated a Transnet project called New-Multi Product Pipeline, which was managed by Msagala, according to TimesLIVE.
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It has been alleged that IGS was paid over R160 million after Msgala awarded the company contracts in relation to the project. Of that money, he received R26.4 million, which he used on various properties valued at R15.2 million.
Msgala also bought 35 cars that he had registered in the names of his family members. Two of the properties bought by Msagala were registered in his daughter's name. One witness alleged that during his tenure, Msagala often ordered bodyguards to run his errands.
Transnet looks for private investors for infrastructure reasons
Briefly News previously reported that Transnet recently stated that it will be putting a request through for information (RFI) regarding private sector investors. This will be with regards to its Durban port as Transnet is looking to broaden the facility within the next 10 years.
On Monday, CEO Portia Derby said that the entire project would cost them around R100 billion but that the group would not be able to pay that. Board Chairperson Popo Molefe stated that although they are looking for private partners for the infrastructure, this does not mean they will privatise the group.
According to EWN, Transnet wants the Durban port to become a 'super terminal'. This means it will be handling large vessels which will also assist in improving efficiency. The group will only be able to put R3.5 billion into the project.
Source: Briefly News
