The fraud case against two men linked to the alleged unauthorised selling of Transnet railway lines continued in the Gqeberha Magistrates Court on Wednesday.
The State alleges that businessman Syed Mohiudeen of Spanish Ice Logistics and former Metrorail Regional Manager in the Western Cape, Mthuthuzeli Swartz, defrauded the complaints out of R1,5 million.
Both men have pleaded not guilty.
It is alleged that the accused unlawfully and in the execution of a common purpose to defraud, gave out and pretended to Adrian Samuels and Cedric Samuels that Mohiudeen had obtained the right to uplift and sell rail material in the Eastern- and Western Cape.
According to the charge sheet, the two accused also allegedly brought Adrian and Cedric under the impression that they were entitled to authorise them to uplift the railway line between Sterkstroom and Maclear and to sell it to prospective buyers for their own account.
Adrian Samuels, the former CEO of Akisisa testified that after several meetings and site visits with both accused, they struck a deal for purchasing used railway lines in the Western Cape and Eastern Cape.
He said despite paying R1,5 million to uplift sections of used railway lines in the Western Cape, the accused failed to deliver on its promises.
Numerous excuses were given as to why the accused could not deliver on their promises, Adrian testified.
He further testified that Swartz later suggested a trip to the Eastern Cape to identify other rail material, pending stock availability in Cape Town.
Based on this premise Adrian and Cedric assembled a team to uplift the railway line between Sterkstroom and Maclear.
This included hiring labour, booking accommodation, and hiring a 40 ton crane, storage facilities and plant and equipment tools.
They were stopped in their tracks by Transnet security after 42 000 meters of railway line had already been uplifted.
The trial continues.
