Company to repay profits from R200 million in dodgy Transnet deals

Company to repay profits from R200 million in dodgy Transnet deals

- A dodgy Transnet tender has seen a company ordered to repay all profits made from the deal

- IGS Consulting Engineers was awarded over R200 million in contracts at the state-owned entity

- Now, the High Court has found that five contracts dished out were handed over illegally

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IGS Consulting Engineers has found themselves in a fair bit of trouble after the Johannesburg High Court discovered they enjoyed unlawful contracts with Transnet.

The company has been ordered to repay profits made in the R200 million worth of government tenders it had enjoyed.

A Transnet executive enjoyed benefits such as a deposit for a luxury home and even five scooters procured from China.

City Press reports that Judge Bashier Vally had ruled the profits should be refunded due to the corrupt relationship between company boss Sipho Sithole and Transnet executive Herbert Msagala.

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During the ruling, Vally had spared no feelings, handing down a scathing judgment last week:

“The relationship between Msagala and Sithole was clearly not an arms-length one. Taking advantage of his position as the chief executive officer of Transnet Group Capital, Msagala irregularly and improperly awarded contracts worth substantial amounts of money to IGS or IGS JV."

Sithole had even been allowed to tag along during a Transnet-funded trip to China, despite no legitimate reason to be involved in the SOE's business affairs.

Vally said that the mountain of evidence presented to him left him with no other alternative than to declare the relationship between the two executives as corrupt, Briefly.co.za gathered.

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Source: Briefly.co.za

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