Brian Molefe failed to get go-ahead for massive Transnet locomotive price hike, inquiry hears

Transnet’s former CEO Brian Molefe did not seek required approval from the minister of public enterprises when the price for the acquisition of 1 064 locomotives was hiked by billions of rands, the state capture inquiry heard on Wednesday.

The commission of inquiry has been investigating allegations of state capture, corruption and fraud since August 2018.

Tshiamo Sedumedi of MNS Attorneys was continuing to testify on Tuesday about the findings of six investigative reports into Transnet. The group had been asked to probe allegations of irregularities related to tenders by the state-owned entity’s previous board.

The 1 064 locomotives were meant to upgrade and modernise Transnet’s fleet, but the contract has been dogged by allegations of kickbacks, fraud and irregularities after the price increased from R38.9bn to R56bn.

Sedumedi told the commission that, according to MNS’s probe, the price increase was unlawful because Transnet had not sought approval from the