The controversial vendor of the locomotive Swifambo Rail Leasing has lost the Supreme Court's appeal to the High Court's decision to abolish the tender R3.5bn with the South African Travel Rail Agency (Prasa).
Last year Judge J Francis at the High Court in South Gauteng in Johannesburg found that the contract between Pras and Swifambo was invalid.
This, after the Prasa Board, led by Pop Pope, who is now chairman of Transneto, has launched a court order to cancel the contract invalid.
Molefe also conducted a move that he sought to offset R2.6bn paid Swifambou.
Swifambo did not deliver a full supply of trains as required by the contract, but submitted only 13 out of the 70 forecasts.
But the locomotives that were delivered are not suitable for the Prasina rail network.
The SCA in Bloemfontein heard the arguments in this case earlier this month and on Friday dismissed the appeal at the expense of two defenders.
Companies owned by former state officials
In previous court proceedings, Molefe described in detail that Swifambo – owned by former state official Auswella Mashaba – was created specifically for a job that was estimated at around R5bn, just four months before it went out to tender.
Unlucky locomotives were supplied to Vossloh España, a railway company in Valencia.
News24 announced in January this year that Vossloh paid R75m to S-Investments, a company whose only director is MacHebh Mabunda, a former state official and former fellow Lucky Montane, Prasina's former executive director.
At that time, Mabunda did not want to discuss the S-Investments received by Vossloh España in any detail.
"My companies are doing a lot for international companies," Mabunda said.
He confirmed that he knew Montana from his job as a Public Affairs Officer.
"The media writes many bad things about me and my businesses, so I will no longer talk to the media. You can write what you want," he told News24 in January.
This is a story in development.