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Former Transnet project manager faces court for alleged R160 million fraud and corruption scheme

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The Hawks’ fight against tender fraud intensified on Tuesday when a 52-year-old former Transnet project manager appeared in the Palm Ridge Specialised Commercial Crimes Court over R160 million in irregular pipeline contracts.

Phumlani Kubheka, who allegedly approved contracts despite knowing the contractors lacked mandatory qualifications, handed himself over to authorities following a Special Investigating Unit (SIU) probe into the state-owned enterprise’s infrastructure projects.

The roots of this scandal trace back to 2020, when the SIU began investigating five contracts awarded by the Transnet Group Company (TGC) to IGS Consulting Engineering firm.

These contracts, granted between May and August 2015, were part of the New Multi Product Pipeline (NMPP) project, which sought to ensure the efficient maintenance and upgrading of vital high-pressure pipe infrastructure that transports various fuel products from Durban to Gauteng.

“Investigations have revealed that Phumlani Kubheka who was the project manager at the time was aware of the irregularities in the appointment of IGS as well as that of IGS Turn mill joint venture and was fully aware that neither had CIDB (Construction Industry Development Board) grading,” said police spokesperson, Warrant Officer Thatohatsi Mavimbela.

Despite recognising that neither firm held the necessary CIDB grading, a crucial requirement for government contracts, Kubheka allowed the contracts to proceed.

This oversight has resulted in fruitless and wasteful expenditure, raising serious questions about accountability in the tendering process.

“Kubheka appeared before the Palm Ridge Specialised Commercial Crimes Court where he was granted bailed of R20,000,” said Mavimbela.

His case has been postponed to November 19, at which point Kubheka is expected to join fellow accused Linyenga Makainene Herbert Msagala.

Msagala was detained earlier on October 21 and subsequently released on bail amount of R60,000.

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