Former Transnet CEOs Molefe and Gama Arrested in R93 Million Locomotive Fraud Case

• Arrest of Former Transnet Executives: South African authorities detained two former Transnet CEOs and a CFO due to allegations of corruption, fraud, and money laundering related to a R93 million locomotive deal linked to the Gupta family.
• Irregularities in Locomotive Deal Procurement: Investigations uncovered a pattern of misconduct, including the misappropriation of funds and inflated project costs, after shifting procurement from JP Morgan to Gupta-connected firms.
• Financial Malpractice and Cost Inflations: The case involves a significant increase in project costs from R38 billion to over R50 billion, with large payments rerouted to Gupta-associated companies.

South African authorities have arrested two prominent former Transnet CEOs, Brian Molefe and Siyabonga Gama, along with former chief financial officer Anoj Singh, in connection with allegations of corruption, fraud, and money laundering stemming from a R93 million locomotive deal linked to the Gupta family.

According to reports, the Investigating Directorate Against Corruption (IDAC) executed the arrests on Monday, prompting the executives to surrender themselves in Johannesburg. They are set to appear in the Palm Ridge Magistrate’s Court this week.

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The outcome of a forensic investigation and the Zondo Commission of Inquiry revealed a pattern of irregularities:

• A 2015 procurement deal intended for 1,064 locomotives was shifted from JP Morgan to Gupta-linked Trillian Capital.
• The state-owned enterprise issued a R93.4 million payment to Trillian in December 2015, with R74 million rerouted to Albatime—a Gupta-connected supplier—within days.
• Project costs ballooned from an estimated R38 billion to over R50 billion, flagging significant financial malpractice.
• Molefe allegedly misled the Transnet board and failed to notify ex‑minister Malusi Gigaba about cost hikes, as detailed in a 2018 report.

On Monday, all four former executives—including Thamsanqa Jiyane—made bail applications at the Palm Ridge Magistrate’s Court. Each was granted bail of R50,000, with the case due to return to court in October for further investigation.

The arrests follow longstanding calls from the Zondo Commission for criminal prosecutions, aiming to hold influential figures accountable for state capture. They reflect intensified efforts to enforce anti-corruption laws in the wake of the Zuma-era scandals.

The MK Party, which counts Molefe among its senior figures, has condemned the arrests as politically motivated, alleging “a troubling pattern of retaliation” against black professionals and party members.

This case marks a pivotal moment in South Africa’s fight against corruption, highlighting the need for judicial independence and accountability. It underscores the ongoing legacy of State Capture—and the extent to which entrenched corruption continues to implicate former state leaders, including those who once led major public enterprises.