Former Transnet executive loses bid to regain R18-m in assets seized by the state
AFRICAN MIRROR REPORTER
A former Transnet executive has lost his bid to recoup 35 luxury vehicles, two farms and houses in gated estates which the state believe are proceeds of crime.
Herbert Msagala went to court in an effort to regain the assets, worth R18-million, which were attached by the Special Investigating Unit (SIU) but lost. The seizure of the assets was made permanent and he was also ordered to pay the cost.
The SIU has announced that a Special Tribunal heard Msagala’s case and confirmed a preservation order dated July 30. The Special Tribunal further declared that assets belonging to Msagala are forfeited to the State.
It has also emerged that Msagala was fighting to retain his pension. The SIU also revealed that the interdict imposed by the Special Tribunal on the Transnet Pension Fund not to pay out the pension of Msagala remains in force and is extended until the conclusion of proceedings against Msagala in the Tribunal.
The SIU said the assets were proceeds of corrupt and criminal activity. It alleged that Msagala was engaged in criminal activities with IGS Consulting Engineers, a company which was awarded dubious tenders from Transnet Capital Projects when Msagala was an 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.”