AS IT HAPPENED: 'This business was on the edge of a cliff' - Molefe says of Transnet at state capture inquiry

In conclusion, Molefe says Transnet board is not about investigations, they have develop strategies to support management in achieving goals of the company. #StateCaptureInquiry

— State Capture Commission (@StateCaptureCom) May 7, 2019

Molefe says Transnet is a good business, it is able to service its loans. "It is making profits even though they are not performing to their best possible ability." #StateCaptureInquiry

— State Capture Commission (@StateCaptureCom) May 7, 2019

Molefe : Transnet was on the edge of a cliff. R72bn revenue generated, makes profit, trasnet doesnt go to government for guarantees. Has one [old] R35bn guarantee. #StateCaptureInquiry

— Angelo Coppola (@AngeloCoppolaSA) May 7, 2019

Molefe [12.5] on engaging lenders to not pull loans. It had R125bn in loans. R115bn was with lenders who had signed loan covenants, confirming that if it would have a qualified opinion, it would trigger a cross default. #StateCaptureInquiry

— Angelo Coppola (@AngeloCoppolaSA) May 7, 2019

Molefe: It was just a matter of time that Transnet became like Eskom. Trasnet was on the verge of collapse. People must understand this. #StateCaptureInquiry

— Angelo Coppola (@AngeloCoppolaSA) May 7, 2019

Molefe: It was just a matter of time that Transnet became like Eskom. Trasnet was on the verge of collapse. People must understand this. #StateCaptureInquiry

— Angelo Coppola (@AngeloCoppolaSA) May 7, 2019

Transnet is claiming R11 Million from Edward Thomas for work not done by Trillian. #StateCaptureInquiry

— State Capture Commission (@StateCaptureCom) May 7, 2019

Molefe says Transnet is claiming R282,7 Million from Ramosebudi.

R93m for work not done by Trillian.
R189m for work not done by Regimnet #StateCaptureInquiry

— State Capture Commission (@StateCaptureCom) May 7, 2019

Underlying reason for all these claims, says Molefe, is that it cannot be that managers deliberately breached or ignored their fiduciary duties. #StateCaptureInquiry

— Angelo Coppola (@AngeloCoppolaSA) May 7, 2019

#StateCaptureInquiry From Brian Molefe, Transnet is claiming R79 million for payments made to regiments for work not done as well.

— Gaopalelwe Phalaetsile (@Gao_Phala) May 7, 2019

Molefe says Transnet is claiming costs from Mr Gama to a total of R323m
-R41.4m for work not done by Trillian
-R93m for work not done
-R189m paid to Regiment for work not done.#StateCaptureInquiry

— State Capture Commission (@StateCaptureCom) May 7, 2019

Molefe says Transnet is in the process of recovering monies that was paid for nothing.
Trillian was paid R41.4, R11m, R93m, R145. #StateCaptureInquiry

— State Capture Commission (@StateCaptureCom) May 7, 2019

Molefe says the board took steps against official that were implicated in wrongdoing.
Mr Gama was fired, he took the matter to court but he lost the case.#StateCaptureInquiry

— State Capture Commission (@StateCaptureCom) May 7, 2019

Molefe says the board has begun the process of recovering monies that were lost, China South Rail has paid back R618m of the R700m that was paid in advance. #StateCaptureInquiry

— State Capture Commission (@StateCaptureCom) May 7, 2019

Molefe says the board has begun the process of recovering monies that were lost, China South Rail has paid back R618m of the R700m that was paid in advance. #StateCaptureInquiry

— State Capture Commission (@StateCaptureCom) May 7, 2019

#StateCaptureInquiry Molefe says they estimate that Transnet needs to recover R7.2 billion, he says a lot of it has already left the country. He says they are collaborating with law enforcement.

— Gaopalelwe Phalaetsile (@Gao_Phala) May 7, 2019

Molefe says they are in collaboration with SIU to address the consequences of Malfeasance of the locomotive contracts. #StateCaptureInquiry

— State Capture Commission (@StateCaptureCom) May 7, 2019

Molefe says the Loliwe investigation was to conduct an investigation into possible irregularities in respect of the “relocation” of China North Rail (“CNR”) and Bombardier Transportation (“BT”) from Koedoespoort to Durban.#StateCaptureInquiry

— State Capture Commission (@StateCaptureCom) May 7, 2019

Molefe says around Apr 2018 the President instituted an investigation on the 1064 locomotive contrat. The SIU and MNS reports have declared the 1064 contracts are unlawful and irregular. #StateCaptureInquiry

— State Capture Commission (@StateCaptureCom) May 7, 2019

Molefe says they have introduced a system of committee approval to eradicate weakening of the entity and ensure that decision is taken by a collective in the interest of the entity. #StateCaptureInquiry

— State Capture Commission (@StateCaptureCom) May 7, 2019

Molefe says everytime there is failure to observe rules Transnet would have to pay penalty fees. "I would imagine that every time this monies were paid, they would eventually end in the pockets of Issa and team."#StateCaptureInquiry

— State Capture Commission (@StateCaptureCom) May 7, 2019

#StateCaptureInquiry Molefe talks about what has been testified about before related to other SOE's, that those who managed to negotiate these contracts would be be paid through other company's, he calls it a success fee.

— Jacaranda News (@JacaNews) May 7, 2019

Molefe says as more people come forward to disclose information - it will help to change the organisation's culture, rebuild it and restore public confidence in state-owned enterprises. @Fin24 @TeamNews24

— lameez omarjee (@LameezOmarjee) May 7, 2019

Molefe says whistleblowers have come forward with more issues to be investigated at Transnet. @Fin24 @TeamNews24

— lameez omarjee (@LameezOmarjee) May 7, 2019

Molefe says all these directors in question were appointed by former Public Enterprise Minister Malusi Gigaba - who he calls a big buddy of the Guptas. @Fin24 @Teamnews24

— lameez omarjee (@LameezOmarjee) May 7, 2019

Popo Molefe names Brian Molefe, Anoj Singh and Siyabonga Gama as the architects of capture, having signed off on big, irregular contracts at Transnet. @Fin24 @TeamNews24

— lameez omarjee (@LameezOmarjee) May 7, 2019

Molefe says that management acted as a screening house, preventing employees from talking to the board of directors. He describes there being a "regimental arrangement" in the company, like an army. @Fin24 @teamnews24

— lameez omarjee (@LameezOmarjee) May 7, 2019

Molefe says there was rampant disregard of the rules. Transnet bought land from ACSA for a new Durban dig out at R1.9bn. He says they found companies on that land without agreement with Transnet. He says Siyabonga Gama denied Knowledge. #StateCaptureInquiry

— State Capture Commission (@StateCaptureCom) May 7, 2019

#StateCaptureInquiry Molefe says they identified three main protagonists who implemented state capture, he says there are Brian Molefe, Anoj Singh and Siyabonga Gama and records will show this.

— Jacaranda News (@JacaNews) May 7, 2019

Molefe says that key individuals would make units at Transnet redundant, and then collude with consultancies to take over services. These consultancies would earn billions in service fees. @TeamNews24 @Fin24

— lameez omarjee (@LameezOmarjee) May 7, 2019

Molefe says consultancies- reputable ones like McKinsey - have been used for the interests of individuals and not that of the organisation. @fin24 @teamnews24

— lameez omarjee (@LameezOmarjee) May 7, 2019

Molefe says that the board is dealing with individuals who have been witholding information. @fin24 @TeamNews24

— lameez omarjee (@LameezOmarjee) May 7, 2019