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For Baldwin ndaba 
6h ago
Johannesburg – Supreme Court Vice President Raymond Zondo has lashed out at Transnet bosses, including former group CEO Brian Molefe, for paying a 20 million rand fee to former Communications Minister Simphiwe Nyanda for no valid reason such as settlement after a disputed security contract.
Judge Zondo’s outrage came after Molefe admitted that the rand 20 million fee was not a deal sanctioned by a court of law.
He told the commission that the dispute between the transportation department and the former minister’s security company, Abalozi, had led to civil suits being filed against each other.
According to the evidence, Molefe said that Transnet had presented documents suing Abalozi for making monetary claims for work not done prior to his arrival at the transportation agency.
Abalozi had filed a counter-application and was suing Transport for R95m for loss of income for its former directors and founding members, as well as loss of income.
Molefe said General Nyanda later escalated the dispute to his office, prompting him to demand answers from his security chief, General Muzwendoda Toka.
Officials had claimed that Abalozi did not do any work to justify his payment. When I asked General Toka about it, he denied the officials’ claims. General Toka showed me the correct timesheets. He was convinced that Abalozi had done the job.
“I did not ask for statements. General Toka showed me test fields of the work done, ”said Molefe.
He said officials had withheld evidence that Abalozi had worked for Transnet, saying its officials were not truthful and, as a result, General Nyanda’s company had suffered reputational damage.
The parties, the commission heard, agreed to an out-of-court settlement. In detailing the content of the agreement, the commission heard that Abalozi initially demanded a fee of R40 million for restitution and compensation. The security company added an additional R20 million for lost revenue on October 6, 2014, but Molefe settled for R20 million.
Both the advocate for the leader of the evidence Anton Myburgh and Judge Zondo described the fee paid to General Nyanda as a “gift.”
Judge Zondo was visibly angry that the agreement was not the result of court proceedings. He was also particularly angry that Abalozi had also made claims on behalf of its founding directors. Judge Zondo also expressed his anger that both parties had withdrawn the litigation from each other, but Transnet had agreed to pay 20 million rand as a settlement.
“It is shocking. In all the years that I have been in legal practice, I have never seen a settlement like this. Normally, each party pays its own legal expenses. Or one of the parties pays a certain part of the costs. Generally, these amounts never exceed R1m, ”Judge Zondo said.
In response, Molefe hinted that his decision could have been motivated by a memorandum drawn up by Transnet to justify the payment.
You are expected to file that memorandum during your next appearance, the date of which will be determined by your attorney and the commission’s legal team.
Political Bureau
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