Transnet, SIU secure order to freeze assets of two execs

The Special Investigating Unit (SIU) and state-owned ports and logistics company Transnet have obtained a
preservation order from the Special Tribunal to freeze five luxury properties in gated estates and R1.8 million in
pension benefits of two former executives, pending civil proceedings against them.

According to a joint-statement issued by Transnet and the SIU on Tuesday, a SIU investigation has revealed that the acquisition of properties by the Transnet executives was allegedly funded by money received from service providers contracted by the company.

Transnet has civil proceedings to recover damages or losses related to the questionable transactions.

The Special Tribunal order, dated 8 August 2022, prohibits Zakhele Lebelo, his wife Alletta Mokgoro Mabitsi, and Phathutshedzo Brighton Mashamba and his wife Matlhodi Phillicia Mashamba from transferring title, selling, leasing or donating their luxury properties located in Joburg’s upmarket areas of Rosebank and Dainfern.

Transnet and the SIU say the two former Transnet executives allegedly received unlawful financial benefits worth approximately R10 million from the service providers to acquire luxury properties on behalf of trusts administered by themselves and their spouses.

The service providers include Superfecta Trading 209 (Superfecta), which is Transnet’s supplier of electrical and maintenance services; and, BBDM Bros Advertising Agency (BBDM), its Carlton Skyrink Building tenant.

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According to Transnet, Superfecta earned over R64 million in payments as a result of its business with its Transnet Property division while BBDM was paid tenant installation allowances over R73 million from March 2015 to June 2018.

The Special Tribunal order also interdicts and restrains Transnet Retirement Fund from paying out or transferring any benefits it holds to Lebelo, who was employed as Group Executive for Transnet Property and subsequently resigned in November 2018, pending a disciplinary enquiry.

Phathutshedzo Mashamba was suspended on 16 May 2022 from his position as regional manager for coastal region pending the SIU’s investigation.

“Transnet welcomes the outcome of the investigation and will continue to work with the SIU and other law enforcement agencies to ensure that those that are found guilty of wrongdoing face the full might of the law,” the group said in the statement.

It noted that the properties constitute proceeds of unlawful activities and hence the application for a preservation order is pending the final determination of the review application. The properties are thus currently under the care of a curator.

SIU Head Adv Andy Mothibi commented: “The order is a continuation of the implementation of the SIU investigation outcomes and consequence management to recover assets and financial losses suffered by state institutions and/or to prevent further losses.”