Special Investigating Unit freezes assets of Transnet senior executives

Special Investigations Unit head advocate Andy Mothibi. Picture: Supplied

Special Investigations Unit head advocate Andy Mothibi. Picture: Supplied

Published Aug 10, 2022

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Pretoria - The Special Investigating Unit (SIU) has successfully preserved five luxury properties in upmarket Joburg suburbs belonging to two Transnet officials who allegedly defrauded the rail freight company of millions of rand.

The SIU and Transnet also froze more than R1.8 million of pension funds belonging to Zakhele Lebelo.

In the order, the Special Tribunal barred Lebelo and his wife Alletta Mokgoro Mabitsi, as well as Phathutshedzo Brighton Mashamba and his wife Matlhodi Phillicia Mashamba from selling, leasing, donating or transferring title (to) their luxury properties in Rosebank and Dainfern.

The ruling followed an SIU investigation that revealed that the acquisition of the properties were allegedly funded by money received from service providers contracted by Transnet.

Therefore, the luxury properties constitute proceeds of unlawful activities, hence the application for a preservation order pending the final determination of the review application. The luxury properties are now under the care of a curator.

The SIU and Transnet approached the Special Tribunal following an SIU investigation which revealed that the two

Transnet executives allegedly received unlawful financial benefits worth about R10 million from Transnet service providers Superfecta Trading 209 and BBDM Bros Advertising Agency.

SIU spokesperson Kaizer Kganyago said the executives allegedly used unlawful financial benefits to acquire luxury properties on behalf of trusts administered by themselves and their spouses.

Superfecta has been a supplier of electrical and maintenance services to Transnet Property from 2016, while BBDM obtained a long-term lease of Transnet Property’s Carlton Skyrink Building in 2015.

Between 2016 and 2018, Superfecta earned over R64 million from Transnet as a result of its business with Transnet Property. Pursuant to its lease with Transnet, BBDM was paid tenant installation allowances totalling over R73 million from 2015 to 2018.

The Special Tribunal order also interdicts the Transnet Retirement Fund from paying out to Lebelo, who was Group Executive: Transnet Property but resigned on November 28, 2018, pending a disciplinary inquiry. On May 16, Transnet suspended Mashamba as Regional Manager: Coastal Region pending the SIU probe.

Transnet and SIU, the court heard, intend to institute civil proceedings against Lebelo and Mashamba for the disgorgement of secret profits they earned from Superfecta and BBDM Bros Advertising Agency.

They argue the pair were instrumental in Superfecta and BBDM being awarded Transnet contracts that were prejudicial to Transnet. SIU and Transnet also seek to recover damages Transnet endured as a result of the pair’s breach of duties.

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