By Lungile Ntimba
The Special Investigating Unit (SIU) has welcomed the arrest and court appearance of former Transnet Group Capital CEO Herbert Msagala on fraud and money laundering charges.
This comes after a thorough investigation by the unit, which uncovered that Msagala allegedly improperly benefited from kickbacks exceeding R26 million from IGS Consulting Engineering. He allegedly used the money to purchase properties and vehicles.
SIU spokesperson Kaizer Kganyago highlighted that the investigations focused on contracts totalling over R194 million that Transnet awarded to IGS.
“These contracts were related to maintaining and upgrading high-pressure pipeline infrastructure as part of the New Multi-Product Pipeline project, which transports various fuel products from Durban to Gauteng,” Kganyago in a statement.
He said that in July 2020, the unit received a preservation order from the Special Tribunal to preserve Msagala’s pension benefits and assets which valued over R18 million.
The former Transnet executive attempted to overturn the order, but lost his appeal in November that year. As a result, his properties
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