The general manager says he was fooled by then Western Cape Regional Manager Mthuthuzeli Swartz and businessman Nadir Mohiudeen
Former Plaza CEO Mthuthuzeli Swartz and Cape Town businessman Nadir Mohiudeen stand have been accused of fraudulently selling Eastern Cape railway lines. The general manager of Akisisa at Durban Company testified that he believes Mohiudeen has signed a 12-month agreement with Metrorail to sell the second-hand railway. In February 2013, the railroad ridge was stopped by a Transnet. Transnet owns raised rails and cases have been opened at the Elliott Police Station in the Eastern Cape. The trial is currently underway in 12 years.
The Durban company, then-Prasa Western Cape Regional Manager Mastuzeri Swartz and businessman Nadir Mohiuddin, promised a 25,000 tonne second-hand railway, paying R1.5 million in October 2012, but the materials were never published.
They were told by Swartz that they could raise the Eastern Cape railway line instead, but the company owed a R3.5 million only to discover later that the line was owned by the Transnet.
Akisisa’s general manager, Adrian Samuels, takes his second day in a Gqeberha Regional Court trial against Mohiudeen and Swartz, which are accused of illegally selling the 42km railway line between Sterkstroom and Maclear.
Samuels told Magistrate Tabitha Mpingpirashe that he was led to believe that Spain’s ice, a company of Mohiudine, had a bid for the Metrorail (South African Aisle Railway Rail Division) to dispose of 360,000 tons of second-hand railways over a year.
He said Mohiudin said 25,000 tonnes of used rails could be delivered on October 25, 2012 at Prasa Rolling Stockyard in Woodstock, Cape Town.
Samuels said he and his cousin Cedric Samuels, along with his friend Bernie Shaw, went to Cape Town on October 24th to lease the space on the second-hand rail at Scrappade in Blackheath.
“On the 25th, we were only told by Mohiudeen that there was a delay in order to wake up early and start business, which had something to do with changing stockyard volume and stock take.”
He said they had been promised delivery on October 29th. However, he said he met Mohaiden and Swartz at a coffee shop on V&A Waterfront on Sunday, October 28th, where he was told to pay R1.5 million for the railway to be collected and delivered. He said this was a “normal procedure” and that payments were to be made on Spanish ice, and Mohiudin said he would “pay Metrol.”
Samuels said he was unhappy as such payments had never been discussed in numerous previous meetings with Mohiudine.
However, Samuels said he went to Mohi-Udeen’s office in Claremont the following day (Monday, October 29th) to pay. He requested a receipt containing the purpose of the payment.
Samuels said the day after October 30, 2012, the second-hand railway was promised to deliver to Blackheath.
However, the next day he was told there was still a delay due to stock acquisition.
“We expressed our misfortune, especially as some payments were made, but Mohiudine said the delay was beyond his control and he would arrange a meeting with Swartz.”
On Wednesday, October 31st, Mohi-Udeen took Samuels and potential buyer, Mansin from New Recalamation Group, to meet Swartz at his Central Cape Town office, as the second-hand railway had not yet been delivered. Samuels said Swartz proposed an Axis Rail in the Eastern Cape that is ready to use and proposed to inspect the site.
Samuels arranged and flew to East London the next day with Cedric, Swartz and Mohyudeen to identify the uplifting rail.
Back in Cape Town on Sunday, November 3, 2012, Samuels confirmed that Mohi-Udeen can begin improving the rails and said the paperwork will be sorted out by Swartz. With the promise they could move on in the Eastern Cape, Samuels hired a car, bought a GPS phone, headed for the Eastern Cape, where they measured the line length as “just over 200km.”
In Durban, they mobilized their crew, hired equipment and set up at Elliott by the end of November to begin raising the rails. Samuels said they kept informing Mohaiden and Swartz and asking for paperwork.
He said during “communications,” Mohiudin said “he hadn’t taken us to the Eastern Cape,” but it was Swartz who took it to the Eastern Cape. “I disputed this,” he said.
By February 2nd, a supply agreement between Achissa and the new regeneration group had been signed.
He later said they received a letter from New Carolina Group’s Clayton Forster, saying that “the final letter” was required for transport and processing used railroads.
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“A few days later I got a call from Albert Links on Transnet Freight Rail,” he said.
“As Defendant 2 (Swartz) pointed out, he said he was told he belonged to the Metrorail.”
Samuels said he told Link how he obtained permission to lift the line and that a R1.5 million deposit had been paid to the Spanish ice and that there was a “author” approval letter.
He said the next day, Transnet Security Guards stopped the railroad surge and opened a lawsuit at the Elliott Police Station.
He said the following day, two Transnet “special investigators” came to Achissa’s Durban office and offered to help with the investigation.
“During all this, I contacted (Mohiudeen and Swartz) and told them what had happened… They both said they would resolve the issue.”
He said the transnet confiscated all raised rails. As a result, Achissa lost roughly R3.5 million in the costs incurred for the work they did.
The case continues this week.
