Transnet Fraud Scandal Deepens: Witness Links Katiso Molefe’s Nephew to Murder and Tender Rigging

Transnet Fraud Scandal Deepens

Witness links underworld family ties to engineer’s murder

A shocking new revelation at the Madlanga Commission has cast a dark shadow over Transnet, one of South Africa’s most critical state-owned enterprises. A witness has linked Lucky Molefe, nephew of the notorious underworld businessman Katiso “KT” Molefe, to a sophisticated tender-rigging scheme, one that may have indirectly led to the murder of engineer Armand Swart.

Testifying before the commission on Wednesday, Witness B, a law enforcement officer directly involved in the investigation, described a chilling network of manipulation, greed, and cover-ups that allegedly took place inside Transnet’s procurement system.

The Molefe Connection

According to Witness B, Lucky Molefe was “the buyer” the key figure who engineered the awarding of a lucrative Transnet contract to SK Group, a company he was personally connected to.

“Molefe knew from the start that SK Group would win,” the witness told the commission. “The other companies were just there to make it look like a fair competition.”

This “sham competition” sidelined long-time, trusted suppliers, among them QTech, a family-run engineering firm that had supplied Transnet with parts for over 40 years.

How the Tender Scam Worked

The heart of the scandal lies in a seemingly mundane product: metal springs. For decades, QTech sold these to Transnet for around R3.90 each. But in 2023, SK Group approached QTech to buy the same springs, then allegedly resold them to Transnet for R151 per unit.

When an inspector noticed the massive price hike, he immediately raised a red flag. “He asked whether Transnet was aware of the increase,” Witness B testified. “He was told it would be escalated, but nothing happened.”

Instead, a second purchase order appeared shortly after, listing the springs at R5.10, in what investigators now believe was a panicked attempt to conceal the inflated deal.

This paper trail, coupled with whistleblower reports from QTech eventually led to a formal investigation by the Department of Public Enterprises, exposing what could be one of Transnet’s most blatant procurement abuses in recent memory.

Murder and the Pressure of Exposure

According to the testimony, the corruption didn’t just cost money, it may have cost a life.

Engineer Armand Swart, who was working closely on projects linked to the tender, was gunned down in Vereeniging on April 17, 2024. Witness B alleged that Swart’s killing was connected to the tension and pressure created by the fraudulent dealings.

Just a day earlier, Witness A had told the commission that Katiso Molefe, Lucky’s uncle, was involved in attempts to bribe his way out of prison while also being tied to Swart’s murder case.

During the investigation, authorities recovered a trove of documents, company registration forms, tender paperwork, and files connected to SK Group. Among them was a particularly suspicious document: a page filled with repeated signatures, believed to be forgery practice.

What Happens Next

Witness B’s testimony continues Thursday, with the commission expected to dig deeper into how far this web of corruption extends within Transnet’s procurement system.

Public sentiment, meanwhile, is one of anger and exhaustion. On social media, South Africans are voicing frustration that yet another state-owned enterprise appears mired in fraud, this time with links to organised crime.

As one user wrote on X (formerly Twitter):

“Another week, another SOE scandal. When does the looting stop?”

A Familiar Story in a Failing System

For many South Africans, this case is emblematic of a broader rot a system where corruption, intimidation, and violence often intertwine. The Transnet scandal isn’t just about tenders and numbers; it’s about the erosion of public trust in institutions that were meant to serve the people.

Whether the Madlanga Commission will deliver justice remains to be seen, but for now, all eyes are on Lucky Molefe, the man accused of turning a public contract into a deadly game of greed.

{Source: IOL}

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