Ex-Transnet executive in court over unauthorised payment of R25m

On Wednesday, Kenneth Diedricks, the former legal head at Transnet Freight Rail (TFR), appeared alongside co-accused Refiloe Martins and Charles Pretorius in the Johannesburg Specialised Commercial Crimes Court. The men were released on R10,000 bail each.

Pretorius and Martins were employed as director and contract manager, respectively, by the company Polyzomba Rail Contractors, which was allegedly at the receiving end of an unauthorised payment of R25-million. The company did rail maintenance for Transnet.

Diedricks resigned from Transnet in November 2015.

Gauteng National Prosecuting Authority spokesperson Phindi Mjonondwane explained that in 2006, TFR awarded a tender valued at almost R64-million to Polyzomba for the replacement of turnouts and track panels on the railway network.

“After completion of the work and the expiry of the TFR tender they [Polyzomba] then lodged a contractual dispute with TFR for the payment of an ancillary contractual payment to the total value of R25-million,” she said.

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The State alleges that on 19 December 2011, Diedricks and TFR’s general manager for rail co-signed and approved the settlement of more than R25-million to Polyzomba without the consultation, approval, knowledge and signature of the engineering department of TFR or the principal engineer, as was required.

“The State further alleges that, months after TFR paid Polyzomba R25-million, Diedricks was paid at least R300,000 from an account held by Polyzomba towards purchasing a house in Bassonia. He further received a carpet worth R20,000 from Umthombo Resources, another company contracted to Transnet,” Mjonondwane said.

Diedericks joins a long list of former Transnet bigwigs who have been implicated in the State Capture report and charged in court, including former Transnet CEO Brian Molefe.

Read more in Daily Maverick: “State Capture Central: How Transnet became the hub of the Gupta looting frenzy” 

Diedericks and his co-accused are back in court on 7 March 2023. DM