The Johannesburg High Court on Tuesday upheld the application by the National Prosecution Authority (NPA) Investigating Directorate (ID) to restrain the assets of Regiment Capital of just over R1 billion.
Allegations are that Regiments was corruptly awarded contracts at state-owned logistics company Transnet.
Regiments was the transaction adviser to Transnet for the latter’s R54 billion procurement tender for 1 064 locomotives in 2014, which the state alleges was inflated by about R16 billion.
The interim restraint initially awarded in favour of the ID in November 2019 was discharged in October 2020 on grounds of failing to disclose material information about the company.
The court of appeal, led by Judge R. Keightley, ordered that the restraint order initially issued by Judge Wright be varied from R1.108 billion to R1.6 billion.
However, due regard was taken to the repayment which Regiments has made to the Transnet Second Defined Benefit Fund in the amount of R639 million.
This then takes the total of restrained assets to R1.05 billion.
The ID further stated in court papers that the funds flowed from allegations of fraud, corruption, and money laundering arising from Regiment advisory services to Transnet in regards to the locomotive deal.
Regiments allegedly used its clout with Transnet to secure lucrative contracts on behalf of the Gupta family and their associates.
ID Director Advocate Andrea Johnson lauds this as a victory for justice: “This was a tough fight, but much appreciated in the long battle against state capture.
“This is just the beginning of law enforcement reclaiming the state from the jaws of capture. “
Johnson lauded the Hawks Investigators and NPA Asset forfeiture personnel for the victory.
In addition to the Regiments matter, the ID has so far declared 82 investigations and enrolled 20 cases with 65 accused persons.
‘’This is a clear indication that the directorate is hard at work in holding those most responsible to account,” said Johnson.
