The SIU welcomes the arrest of Transnet’s former CEO

The Special Investigating Unit (SIU) welcomes the arrest and court appearance of former Transnet Group Capital (TGC) CEO Herbert Msagala.

He appeared before the Specialized Economic Crimes Court in Johannesburg on charges of fraud, corruption, theft and money laundering.

After his initial appearance, Msagala was granted bail of R60,000.

The arrest and court appearance followed a thorough investigation by the SIU which found Msagala wrongly benefited from over R26 million worth of bribes from IGS Consulting Engineering, which he allegedly used to purchase property and vehicles had.

The SIU’s investigation focused on contracts totaling over R194 million awarded by TGC to IGS Consulting Engineering.

These contracts were related to the maintenance and modernization of high-pressure pipeline infrastructure as part of the New Multi-Product Pipeline project, which transports various fuel products from Durban to Gauteng.

Msagala unfairly benefited from more than R26 million in bribes from IGS Consulting Engineering. The SIU investigated as part of the approval of Proclamation No. 11 of 2018.

In accordance with the Special Investigating Units and Special Tribunals Act (SIU Act), if the SIU finds possible criminal evidence, it must refer that evidence to the national law enforcement agency for further action.

In 2020, the SIU filed criminal charges against Msagala and others, which resulted in him being charged along with two individuals and IGS Consulting Engineering as a whole. While the individuals have not yet appeared in court, the Directorate for Priority Crime Investigation (Hawks) is actively investigating their whereabouts.

In July 2020, the SIU obtained a special court preservation order to preserve Msagala’s pension benefits and assets. The assets included 35 luxury vehicles and five properties, including two farms and houses in gated estates, worth over R18 million.

Msagala attempted to overturn the order but lost his appeal in November that year. As a result, his assets and pension fund were forfeited to the state.

Under the SIU Law, the SIU has the power to initiate a civil action on its behalf before the Supreme Court or a special court to address any misconduct arising from corruption, fraud or maladministration found in its investigation.

The criminal proceedings were postponed to November 19, 2024 to enable further investigations and to locate the remaining suspects.

The SIU will continue to support the law enforcement process and ensure that all persons involved in corruption are brought to justice under the law.

The prosecution of Msagala is part of the implementation of the National Anti-Corruption Strategy, which envisages law enforcement agencies coming together to root out corruption in South Africa and ensure that government departments continue to be cleansed of corruption. – SAnews.gov.za