The board of Transnet is seized with resolving the challenges at the State-owned freight and logistics company, says Public Enterprises Minister Pravin Gordhan.
The Minister was responding to correspondence from the Association of South African Chambers, which called for a resolution to challenges impacting South Africa’s economy as a result of underperformance at Transnet.
“The recently announced annual financial results of Transnet have made it very clear that the entity urgently requires serious interventions that will address the root causes of the deficiencies that are having a negative impact on our economy and are hurting our export competitiveness.
“The board is seized with the injunction that I have given it, and I am sure that the issues that have been raised by the Chambers will be addressed in its recommendations or in the feedback that the board will present to the shareholder. The shortcomings of Transnet are of national concern,” Gordhan said.
The Minister recently directed Transnet’s board to report back on issues including:
- Operational transformation.
- Root causes.
- Stringent / Rigorous accountability oversight.
- Management review.
- Information and operational data transparency.
- Excessive cost structure.
- Employee engagement.
“I am confident that the board understands the scale of the challenges that are confronting Transnet, and I can assure the South African public that the board has my full support in its effort to come up with the requisite remedial actions. We will be engaging the Chambers,” Gordhan said. – SAnews.gov.za