Johannesburg – Law enforcers are searching for two individuals linked to the R26 million kickback scandal involving former Transnet Group Capital CEO Herbert Msagala.
The Directorate for Priority Crime Investigation was still “tracing their whereabouts”, said National Prosecuting Authority Gauteng spokesperson, Phindi Mjonondwane.
The case of fraud and money laundering stems from investigations conducted by the Special Investigating Unit into irregularities in five contracts worth over R160 million.
Transnet Group Capital awarded the contracts for the maintenance and upgrading of the high-pressure pipe infrastructure to IGS Consulting Engineering firm between May and August 2015.
The high-pressure pipe infrastructure transports different fuel products from Durban to Gauteng under the project, “New Multi Product Pipeline”.
The state alleges that Msagala unduly benefited from IGS kickbacks worth over R26 million which he allegedly used to buy houses and cars.
On Monday, (21 October 2024), Msagala appeared before the Johannesburg Specialised Commercial Crime Court and was released on R60 000 bail.
Msagala, who is facing charges of fraud, corruption, theft, and money laundering, is expected back in court on 19 November 2024.
The former Transnet Group Capital CEO is charged with two individuals and the entity, IGS.
Mjonondwane said the two individuals were at large and the Directorate for Priority Crime Investigation was searching for them.
