Part two of the report of the Zondo Commission of inquiry into allegations of state capture, released on Tuesday, focuses on two state-owned companies – Transnet and Denel.
It details the financial and operational decline of both companies, which became targets of state capture.
The report recommends that law enforcement agencies conduct further investigations with a view to the possible prosecution of former Transnet officials involved in criminal or other violations of the Public Finance Management Act (PFMA).
Officials to be investigated include former executives Brian Molefe, former CFO Anoj Singh, former chief procurement officer Thamsanqa Jiyane, and former CEO Siyabonga Gama.
The commission also recommends investigating Singh for misrepresenting the infamous 1 064 locomotive project for misrepresenting the financial costs.
Financial advisors are also likely to be investigated for corruption, with a view to prosecution.
On Denel, the report says it was once highly regarded internationally, yet is now “almost on its knees”.
The commission recommends investigations into Denel board directors who supported the suspension of key executives who stood in the way of corrupt contracts awarded to Gupta-linked VR Laser.
The first part of the report, exploring state capture at South African Airways (SAA) and associated companies, was handed over to President Cyril Ramaphosa on January 4.
Ramaphosa has to submit the report to parliament by June 30 with an indication as to how he intends to act on the commission’s recommendations.
He said the handover of the second part of the report is “another significant step forward in the work we need to do to rid our country of corruption”.
“During the course of the past four years the Commission has constructed a disturbing picture of the depth and damage of state capture.
“We should now apply our energies to the Commission’s recommendations and take the necessary steps to make sure we never face this onslaught on public resources and on the fabric of our society.”
Access the Zondo report on Transnet here.
Access the Zondo report on Denel here.