WATCH: Ex-Transnet bosses out on bail!

FORMER Transnet employees out on R50 000 bail each.

The four accused, Brian Molefe, Siyabonga Gama who are members of uMkhonto Wesizwe (MKP), Anoj Singh, and Thamasanqa Jiyane, appeared for a formal bail application in the Specialised Commercialised Criminal Court in the Palm Ridge Magistrates Court, Ekurhuleni, on Monday, 30 June.

According to the state lawyer advocate Santhos Manilall, the four accused handed themselves over at the Brackendowns cop shop after a warrant of arrest was issued for them.

"The four accused are linked to the acquisition of three irregular tenders that amount to R30 billion in total. The four executives are facing 18 charges, including contraventions of the Public Finance Management Act (PFMA), fraud, corruption, and violations of the Companies Act," said Manilall.

Judge Brian Nemavhidi has handed down a judgment stating that the four accused are not considered flight risks and will be able to attend future court proceedings.

During the court proceedings, Brian Molefe's lawyer, Advocate Flo Letoaba, said her client had been unemployed for an extended period and could not afford the R200 000 bail amount presented in court.

"The bail money shouldn't be beyond his reach. He can only afford a R20 000 bail.

"He is not a flight risk. Hence, he has surrendered his passport," said Letoaba.

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She said that it would be more reasonable for his client to be released on a warning.

National Prosecuting Authority (NPA) spokesman Henry Mamothame said they believe the appointment of three tenders was irregular, and this will be proven in court.

He said the charges relate to Transnet's strategic plans in 2011 to actively create capacity, giving rise to their Market Demand Strategy (MDS).

"The focus of the MDS was to expand and modernise the country's port, rail and pipeline infrastructure over seven years, with its focus being on capturing rail-friendly freight from road to rail.

"During the process of acquiring locomotives to expand and modernise the country's rail infrastructure, the accused allegedly flouted the tender process by irregularly appointing a company that did not qualify, to wit, CSR, a Chinese company, to provide the 95 Locomotives," Mamothame said.

He added that all the accused held key positions in Transnet, which was a state-owned entity.

"It was their duty to perform due diligence and ensure that Transnet got value for its money.

"They, however, are alleged to have enabled and ensured that costs were inflated and that their preferred bidder was unduly advantaged.

"During the State Capture Commission hearings, the country heard how billions were looted from Transnet.

"This case depicts that flouting of services and the generation of billions of rands for use not attributed to the rail modernisation project," he said.

The case has been postponed to 6 October for further investigation.