A former Transnet Group Capital (TGC) Chief Executive Officer, Herbert Msagala, appeared in court where he was released on R60,000 bail, after he was allegedly linked to five dodgy contracts worth over R200 million.
Msagala appeared at the Johannesburg Specialised Commercial Crime Court on Monday where he is facing charges of fraud, corruption, theft, and money laundering.
National Prosecuting Authority (NPA) spokesperson in Gauteng, Phindi Mjonondwane, said the charges stem from investigations conducted by the Special Investigating Unit (SIU) into irregularities of five contracts worth over R160 million that were awarded to IGS Consulting Engineering firm by TGC from May to August 2015.
Mjonondwane said the contracts were for the maintenance and upgrading of the high pressured pipe infrastructure that transported different fuel products from Durban to Gauteng under a project called New Multi Product Pipeline (NMPP).
“The State alleges that Msagala unduly benefited from IGS kickbacks worth over R26 million that he allegedly used to purchase various properties and vehicles,” Mjonondwane explained.
Mjonondwane added that Msagala has been charged together with two individuals and the entity, IGS.
“The individuals are yet to appear in court as the Directorate for Priority Crime Investigation is still tracing their whereabouts,” she said.
The case was postponed to November 19 for DPCI to trace the outstanding suspects.
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