The Special Investigating Unit (SIU) has welcomes an order by the Special Tribunal dismissing an application for leave to appeal by former Transnet executive Herbert Msagala and his Trusts.
SIU spokesperson Kaizer Kganyago said that the Special Tribunal had confirmed the preservation order to the value of over R18 million on 17 November 202. Msagala had filed an appeal to the tribunal to have the order overturned.
“The Special Tribunal further declared that assets belonging to Mr Msagala be forfeited to the State, to an extend not exceeding R18, 460, 020, 02. The assets included 35 luxury vehicles, five properties which include two farms and houses in gated estates,” Kganyago said.
“The assets are believed to be proceeds of corrupt and criminal activity. However, Msagala claimed the assets were acquired through his salary and the additional income received from his transport, tent and chair for hire, farming and consulting businesses,” he said.
The SIU approached the Special Tribunal seeking a final forfeiture of assets which were attached through a preservation order.
The order followed a SIU investigation into a Transnet project for the construction of a pipeline for the high pressure transportation of liquid petroleum from Durban to Heidelberg. The project was managed by Msagala, who at the time was employed by Transnet as Group Chief Executive: Transnet Capital Projects.
“The project for the construction of the pipeline was awarded to IGS Consulting, whose sole member was Sipho Sithole. The company was awarded additional contracts at a later stage by Transnet. It is alleged that Mr Msagala was engaged in unlawful activities with IGS Consulting,” he said.
The Special Tribunal dismissed the application for leave to appeal and ordered Msagala and his Trusts to pay the costs of the application, including the costs of the SIU’s two legal counsel.
Fraud and corruption allegations may be reported to the SIU via the following platforms: firstname.lastname@example.org or the hotline: 0800 037 774