The state capture commission has asked Brian Molefe if he had anything to do with the rise of Regiments, which went from being a subcontractor of McKinsey to becoming the main contractor.
The former Transnet and Eskom CEO on Monday said he decided that Regiments should replace the Letsema Company because of a conflict of interest but he didn’t say who should replace the firm.
He said McKinsey’s decision to pay back R650 million of revenue the company made with Regiments was not enough to prove it was the proceeds of large-scale money laundering.
McKinsey’s repayment included work done with Regiments for Transnet and South African Airways and the consultancy said that was because the revenue was tainted.
But Molefe said not until the commission said so.
The commission asked him about the rise of Regiments after he decided that it should replace Letsema with its takeover of the Nedbank contract to eventually becoming a principal contractor with no tender or vetting.
Deputy Chief Justice Raymond Zondo asked: “Regiments comes in and says I just want the hand then says I want the whole arm and then the whole body?”
Molefe responded: “Were they taking over or were they being given?”
Zondo: “I don’t know but ultimately they take the position of the main contractor.”
Molefe said none of the findings meant there was any large-scale money laundering or wrongdoing until the commission makes that finding based on evidence.
-EWN
In other news – #RIPMapulaKhune: What you need to know about the death of Itumeleng Khune’s sister
A 17-year-old is expected to appear in the Ventersdorp Children’s Court on Monday in connection with the alleged murder of Mapula Khune.
Khune, 27, died in a house fire last week. Her body was discovered in a house in Tshing, outside Ventersdorp, in the North West. The deceased was the sister of Bafana Bafana and Kaizer Chiefs goalkeeper Itumeleng Khune. Learn More
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