Transnet Executives and Service Providers Face Court for Alleged Covid-19 Procurement Fraud

In an unfolding courtroom drama that strikes at the heart of alleged corruption during the COVID-19 pandemic, former Transnet executive managers Lerato Makenete, 59, and Hawkins Madubane, 55, find themselves as principal characters. They, along with Jacob Malusi Ramoyadi, 41, Kenneth Rikhotso, 44, and their respective companies, are accused of orchestrating a scheme to defraud the South African parastatal, Transnet.

The Johannesburg Specialised Commercial Crimes Court became the scene of intense scrutiny on Tuesday, 23 July 2024, when the four individuals appeared following their arrests earlier that day. At the center of the case is an allegation that these individuals conspired with each other to supply Transnet with over one million disposable alcohol breathalyser straws at grossly inflated prices, leading to a staggering payment of over R33 million.

Major General Ebrahim Kadwa, the Provincial Head of the Hawks in Gauteng, has expressed approval at the advancement of this case, which his unit has been meticulously investigating. The gravity of the situation is further reflected in the charges levoured against the accused: fraud, theft, and money laundering under the Prevention of Organised Crime Act (POCA).

Investigations commenced with the registration of a case at the Midrand police station back in June 2023. Information uncovered by the Hawks’ Serious Corruption Crime investigation team suggests that not only did the accused bypass crucial procurement procedures, but also failed to disclose their dubious connections with the involved supply companies.

Following the court proceedings, the docket detailing the case was ordered to be disclosed by the 4th of September 2024. In the meantime, all accused have been granted bail at R10,000 each, under stringent conditions designed to prevent tampering with evidence and interference with witnesses.

As South Africa continues to reel from the economic impacts of the COVID-19 crisis, cases like these expose the underbelly of crisis exploitation and corruption, undermining efforts to recover and rebuild. The story serves as a cautionary tale of accountability and the legal repercussions awaiting those who seek to profit from national emergencies through unlawful means.