Records linking Brian Molefe to millions of rands in unexplained deposits uncovered

A months-long investigation by Daily Maverick has uncovered bank records and financial documents that appear to link former Transnet and Eskom CEO Brian Molefe to millions of rands in unexplained cash deposits.

The publication reports that about R11 million was paid into the bank account of a company called Palcocap (Pty) Ltd between 2013 and 2018, a period that corresponds with Molefe’s leadership at Transnet and later Eskom.

According to the investigation, much of the spending from that account appears to have benefited Molefe directly.

R11 million in deposits over five years

Investigative journalist Pieter-Louis Myburgh said the deposits into the Palcocap account totalled roughly R11 million over the five years.

The payments allegedly followed a distinct pattern: multiple cash deposits of relatively small amounts — often R5,000, R10,000 or R15,000 — made at cash-accepting ATMs over a few days.

He described this as consistent with so-called ‘layering’, a money-laundering technique in which larger sums are broken down into smaller amounts to avoid regulatory scrutiny.

“This is when a would-be alleged money launderer takes what is a larger amount and effectively breaks it down into smaller batches to avoid regulatory scrutiny,” Myburgh said.

Spending allegedly linked to Molefe

The investigation claims that expenditure from the Palcocap account financed items that benefited Molefe, including costs linked to his wedding in 2016.

It further states that on at least 18 occasions, a Palcocap credit card was used in foreign destinations at the same time Molefe was publicly recorded as being in those countries.

Myburgh said the evidence shows the card was used “at the very foreign destination that Molefe was visiting within the very time frame that he was in those various places.”

He added that readers could draw their own conclusions on whether Molefe was the one using the card.

Questions over bank oversight

The pattern of repeated small cash deposits has also raised questions about banking oversight and reporting to the Financial Intelligence Centre (FIC).

Myburgh said banks are required to conduct due diligence and ‘know your client’ checks, particularly where individuals have been publicly linked to allegations of corruption.

He referred to testimony at the Zondo Commission, where a former bodyguard alleged that Molefe received bags of cash from the Gupta family.

According to Myburgh, when such allegations enter the public domain, banks and financial institutions are expected to factor that information into their compliance processes.

He said suspicious transaction reports are typically submitted to the FIC, which may then pass information to investigative authorities. However, he suggested breakdowns can occur at different points in that chain.

Possible Gupta link to be explored

While the first part of the investigation focuses on the deposits and spending patterns, Myburgh indicated that a second instalment will examine the possible source of the funds.

He said various pieces of evidence, including prior testimony and earlier reports, would be analysed together to assess whether the money could be linked to dealings involving the Gupta family.

Daily Maverick’s investigation is based on bank records, financial documents and cross-referenced public records spanning several years.

For more information, listen to Myburgh using the audio player below: