Two Transnet managers in court on charges of PPE fraud and theft

Former Transnet managers Lerato Makenete and Hawkins Madubane appeared in the Johannesburg specialised commercial crimes court on Tuesday on charges of defrauding Transnet of almost R34m during the Covid-19 pandemic. 

The two appeared alongside two service providers, Jacob Malusi Ramoyadi and Kenneth Rikhotso, and their companies Ramoyadi Air Conditioning and Electrical and Ndzalo 2 Trading. They are charged with fraud, theft and money laundering.

They were released on bail of R10,000 each.

Makenete and Madubane were responsible for Transnet’s group business continuity and disaster management as well as safety, respectively.

“The state alleges that they conspired with Ramoyadi, Ramoyadi Air Conditioning, Rikhotso and Ndzalo 2 Trading to supply more than a million disposable breathalyser straws at an inflated price,” said National Prosecuting Authority spokesperson Phindi Mjonondwane.

She said the original price per straw was 29c but Transnet was charged R29.99 per straw, resulting in a payment of R33.8m.

Transnet had identified the need for procuring the straws for use in breathalysers through their task team that was formed in 2020 to co-ordinate its efforts in response to the Covid-19 pandemic.

Employees of Transnet are breathalysed each shift before assuming their duties due to the nature of their work, such as driving trains.

“It had become apparent to the task team that the use of Alcoblow breathalysers posed a risk for the spread of the coronavirus due to the dispersion of droplets when a person blows into the machine.

“The use of plastic straws on the breathalysers was found to be effective in limiting the dispersion of droplets, and thus a decision was taken that Transnet should procure straws to be used with the breathalysers.” 

The companies charged with all the accused were allegedly loaded onto Transnet's central suppliers database, though they had never done business within the medical sector and/or registered as suppliers of medical commodities. The companies were classified as construction, electricity, gas, air-conditioning, accommodation and food service providers. 

In October last year, the Special Investigating Unit obtained an interdict preventing the two Transnet employees from withdrawing their pension benefits from the Transnet Retirement Fund, Mjonondwane said.

The case was postponed until September 4 for disclosure of the contents of the docket. 

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