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By Citizen Reporter

Journalist


Gupta ‘middleman’ arrested for dodgy Transnet tenders due in court

According to the Investigating Directorate, the suspect was arrested in connection with alleged money laundering.


An alleged Gupta middleman linked to alleged malfeasance involving Regiments Capital and Trillian is expected to make his first court appearance on Wednesday at the Palm Ridge Specialised Crimes Court.

The man was arrested on Tuesday evening at OR Tambo International Airport before boarding an international flight to Dubai.

ALSO READ: ‘Middleman’ in Regiments, Trillian and Transnet contracts nabbed before boarding Dubai flight

According to the National Prosecuting Authority’s (NPA’s) Investigating Directorate (ID), the suspect was arrested in connection with alleged money laundering of the proceeds from contracts that were improperly awarded by Transnet to Regiments and Trillian, as well as alleged theft of funds from the Transnet Second Defined Benefit Fund.

In 2019, it was revealed at the Commission of Inquiry into Allegations of State Capture that the Gupta-linked Regiments Capital and Trillian allegedly fleeced Transnet of billions of rand in questionable projects, leaving the state-owned entity (SOE) in the red.

Regiments paid a settlement of around R530 million in 2019 to the Transnet pension fund after being improperly appointed to manage the assets of the SOE’s Second Defined Benefit Fund, News24 reported.  

The first red flag about Transnet’s financial decline was when a consortium led by international consultancy firm McKinsey was brought on board to assist the SOE with a strategic and financial turnaround plan.

It ceded its brief as financial and strategic advisors to Regiments Capital, which later brought Trillian to take over the role – a development unheard of in state procurement processes.

This did not go through any rigorous scrutiny by internal treasury structures.

Compiled by Thapelo Lekabe