Malusi Gigaba is in trouble due to release of South Africa’s National Treasury shocking report
- Country:
- South Africa
Malusi Gigaba has already resigned as a Member of Parliament but he continues to be encircled in the allegations of impropriety. South Africa's National Treasury has released a devastating report consisting of over 600 pages that claims that the 47-years old former MP "had compromised the procurement process of controversial new Chinese locomotives."
The forensic investigation carried out claimed that Malusi Gigaba compromised the procurement process for 1,064 locomotives from China South Rail. In other words, it is allegedly claimed that he illegally used his ministerial power to compromise the tender process for the controversial locomitives by signing the agreement between Transnet and China South Rail.
Apart from this, the investigators have discovered some misinterpreted facts generated by the former Transnet CEO Brian Molefe and chief financial officer Anoj Singh in making a business case for the acquisitions of trains.
Political experts in South Africa believe that he might have resigned from his parliamentary position, but this is just the beginning of Public Enterprises Minister haunting him. Other claims have been made like he approved the rise in the cost of 100 locomotives by a billion rand without receiving the mandatory approvals from Treasury and Transnet board.
Malusi Gigaba also reportedly misguided the investigators as claimed by the sources. Despite acknowledging that it is his signature on the agreements, he still continued telling investigators that he was unable to remember when he signed the agreement.
Some other finding also include:
- Management consultant McKinsey, Regiments and Trillian were paid R1.5bn by Transnet between 2012 and 2016.
- The appointment of McKinsey to Eskom was "not in line with the Constitution".
- Transnet made an irregular payment of R94m to Trillian.
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