Former Transnet executives to pay back millions to settle debt with company

Two former Transnet managers and their spouses have reached settlement agreements with the Special Investigating Unit and will have to pay back millions of rand they owe to Transnet for alleged wrongdoing. 

They will have to forfeit their pensions to Transnet and also sell their properties in Rosebank and Dainfern to cover the debt. 

Zakhele Lebelo and his wife Alletta Mokgoro Mabitsi reached a settlement agreement with the SIU. Phathutshedzo Brighton Mashamba and Matlhodi Phillicia Mashamba also reached separate settlement agreements with the SIU. 

In 2022, the SIU obtained a preservation order from the Special Tribunal to freeze a number of luxury properties belonging to the couples. They also obtained interim orders preserving the pensions of Mashamba and Lebelo.

Lebelo was employed as group executive at Transnet Property. He resigned in November 2018, pending a disciplinary inquiry. Mashamba was Transnet Property's regional manager in the coastal region.

The former Transnet executives allegedly received unlawful financial benefits worth about R10m from Transnet service providers. Superfecta Trading had been a supplier of electrical and maintenance services to Transnet Property from 2016, while BBDM Bros Advertising Agency obtained a long-term lease of Transnet Property’s Carlton Skyrink Building in 2015.

The SIU and Transnet then launched a review application with the tribunal against Lebelo and Mashamba. 

In the case of Lebelo, the SIU wanted an order directing him to pay Transnet R5m for a bribe and secret profits Lebelo unlawfully received while employed by Transnet. The SIU also wanted Lebelo to pay R1m for a bribe, gratification and secret profits Lebelo unlawfully received after his resignation from Transnet, for his role in the Superfecta Trading's contracts with Transnet.

In the case of Mashamba, the SIU asked for an order directing him to pay Transnet R2.3m for the bribe and secret profits he unlawfully received while employed at Transnet for his role in the Superfecta Trading and R5.1bn for a bribe, gratification and profits he unlawfully received while employed at Transnet for his role in the BBDM Bros Advertising Agency’s contracts with Transnet. 

The review application was set to be heard last week. 

In terms of the settlement agreement signed last week, Mashamba and his wife acknowledged they were indebted to Transnet for the debt. 

The debt shall be recovered from Mashamba’s pension with Transnet Retirement Fund and the proceeds of sale from his Dainfern house which was evaluated at between R6.5m and R6.8m by Rawson Property Group in August last year. The Mashamba couple also have to contribute R250,000 towards the legal costs of the SIU in the interim relief in 2022 and the review application. 

In the case of Lebelo and the Lebelo Family Trust, represented by Mabitsi as a trustee, they also acknowledged they were indebted to Transnet. 

The debt will be recovered from Lebelo’s preserved pension with Transnet Retirement Fund and the proceeds from the sale of the three preserved units and the exclusive use of Balcony B3 at Capital on Bath in Rosebank. The Rosebank properties were evaluated in September last year with a valuation of between R3.8m and R4.2m. 

The agreements said any amounts in excess of the debt and the total costs received by Transnet from the proceeds of the sale of their properties and their pensions will be paid into their bank accounts.

However, should the proceeds of the sale of the properties and the value of their pensions fail to cover the debt owed, the former executives will remain indebted to Transnet for the outstanding amount. 

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