Former Transnet executive loses bid against the SIU to save frozen assets acquired through corrupt means, ordered to pay costs
Former Transnet Executive Mr. Herbert Msagala has lost a battle with the Special Investigating Unit (SIU) to have a preservation order, which includes movable and immovable properties, against him not be made permanent.
The Special Tribunal today, confirmed a preservation order dated 30 July 2020. The Special Tribunal further declared that assets belonging to Mr Magala is forfeited to the State, to an extend not exceeding R18, 460, 020, 02. The assets include 35 luxury vehicles, five properties which includes two farms and houses in gated estate.
The Special Tribunal also ordered for Mr. Msagala and his investment trust and family trust, which were cited as respondents, to pay for the costs of proceedings on an attorney and client scale, including the costs of SIU and Transnet’s two counsel.
The interdict imposed by the Special Tribunal on the Transnet Pension Fund not to pay out the pension of Mr. Msagala remains in force and is extended until the conclusion of the action proceedings against Mr. Msagala in the Tribunal.
The SIU approached the Special Tribunal seeking a final forfeiture of assets which were attached through a preservation order issued on 30 July 2020. The assets are proceeds of corrupt and criminal activity. Mr. Msagala was engaged in criminal activities with IGS Consulting Engineers, a company which got dubious tenders from Transnet Capital Projects when Mr. Msagala was executive.
In welcoming the order, the Head of SIU Advocate Andy Mothibi said: “This will send a clear message to all those who commit acts of corruption, fraud, maladministration and malpractices. As SIU, we will do our best within the law to ensure that they don’t benefit from their acts of malfeasance and we will take steps such as demonstrated in this order to recover stolen money and assets back to the state.”
The SIU is a forensic and litigation agency tasked with the role of investigating serious malpractice, malfeasance and maladministration in relation to the administration of State institutions, State assets and public money as well as any conduct which may seriously harm the interest of the State and the public.
Fraud and corruption allegations may be reported via the following platforms: siu@whistleblowing.co.za
Enquiries:
Kaizer Kganyago
Cell: 082 306 8888
Tel: 012 843 0048
E-mail: kkganyago@siu.org.za
