Transnet

Transnet SOC Ltd is South Africa’s state-owned freight logistics company, operating rail, ports and pipelines. It is the country’s largest employer and a critical infrastructure backbone. During the Gupta Family state capture era, Transnet became — as the Zondo Commission (Vol 2) put it — the “hub of the Gupta looting frenzy,” describing a “systematic scheme of securing illicit and corrupt influence or control over the decision-making” of the company.

Capture origin (2009–2011): The Zondo Commission found Zuma had a plan to capture Transnet “within a month of taking office” in 2009. Former minister Barbara Hogan testified she faced “enormous pressure” to appoint Siyabonga Gama as Transnet CEO in 2009 and resisted. Under Minister Malusi Gigaba (Public Enterprises 2010–2014), Gama was installed. Zondo: the “first significant locomotive transaction tainted by corruption” occurred soon after Gama and Brian Molefe were appointed to executive positions in 2011.

The locomotive contracts (R54bn): Transnet’s freight rail modernisation programme generated three locomotive procurement contracts:

• 95 locomotives
• 100 locomotives
• 1,064 locomotives — the centrepiece; estimated R38bn in 2012, escalated to R54bn+

The R16bn cost escalation was structured to embed a 20% kickback into the contract price for Gupta-owned front companies. Regiments Capital (initially legitimate-seeming) and Trillian Capital Partners (Salim Essa majority owner) received the advisory fee component. In May 2015, a transaction advisory contract for the 1,064-unit deal was initially awarded to JP Morgan, cancelled amid internal battles, and reassigned to Trillian. By December 2015, Transnet paid Trillian R93.4m — signed off by CFO Garry Pita and CEO Siyabonga Gama. Within three days, R74m was rerouted from Trillian to Albatime (owned by Gupta associate Kuben Moodley) without justification. A further R305m in unexplained contract escalations was pushed through without proper authorisation. A 2018 forensic report found Molefe had misled the Transnet board about its obligation to notify the Minister about cost escalations. The R54bn locomotive contract is the largest known single corrupt transaction in South African history.

Key figures:

Accountability: The Special Investigating Unit (SIU) and Transnet jointly petitioned the High Court to cancel the locomotive contracts (March 2021). Transnet’s post-2018 board co-operated with the SIU. On 30 June 2025, Molefe, Gama, Singh and Jiyane surrendered to IDAC (Investigating Directorate Against Corruption), charged with fraud, corruption, money laundering and PFMA contraventions — specifically relating to the R93.4m Trillian payment. All four granted bail at Palm Ridge Magistrate’s Court. Malusi Gigaba was added as 5th accused in November 2025, appearing at Palm Ridge Specialised Commercial Crime Court. Molefe and Gama are serving MK Party MPs at the time of their arrests.

Connections

• Gupta Family — directed board appointments and procurement; Salim Essa as intermediary; 20% kickback structure
• Trillian Capital Partners — R93.4m advisory fee; R74m rerouted to Albatime within days; Essa majority owner
• Brian Molefe — CEO; “primary architect” Transnet state capture (Zondo); arrested June 2025; now MK Party MP
• Anoj Singh — Group CFO; cross-entity at Transnet and Eskom; arrested June 2025
• Malusi Gigaba — Minister of Public Enterprises 2010–2014; facilitated Gama appointment; 5th accused November 2025
• Lynne Brown — succeeded Gigaba as Public Enterprises Minister; continued SOE capture at Eskom
• Zondo Commission — Part 2 (February 2022): Transnet the “hub of the Gupta looting frenzy”; Molefe/Gama/Singh recommended for prosecution
• Eskom — Brian Molefe moved from Transnet CEO to Eskom CEO; corruption patterns replicated; same Gupta network
• Jacob Zuma — plan to capture Transnet within month of taking office (2009); Gama appointment his initiative
• Special Investigating Unit (SIU) — declared locomotive contracts unlawful; co-petitioned High Court March 2021
• National Prosecuting Authority (NPA) — IDAC arrested Molefe, Gama, Singh, Jiyane June 2025; Gigaba added November 2025

Sources

• Daily Maverick: How Transnet became the hub of the Gupta looting frenzy (2022)
• Daily Maverick: Former Transnet executives in court (July 2025)
• Daily Maverick: Transnet and SIU ask High Court to cancel 1,064 locomotive contracts (2021)