Transnet urged to report irregularities

Tuesday, February 20, 2018

Public Enterprises Minister Lynne Brown has instructed Transnet to report alleged irregularities on the R54 billion procurement process of 1064 locomotives in 2014 to the law enforcement authorities.

The irregularities were identified in an investigative report by a firm of attorneys.

Minister Brown has welcomed the Board's decision to refer matters pertaining to the procurement process to the Judicial Commission of Inquiry into state capture.

She said Transnet's Board could not abrogate its responsibility to restore public and investor confidence in the company.

Overseeing the institution of investigations and disciplinary processes against allegedly errant staff members was the responsibility of the Board, the Ministry of Public Enterprises said.

"Eskom has been down this road of commissioning investigations only to claim they are indecisive or incomplete. It is an unsustainable strategy which adds to the weight of suspicion and negative sentiment about the company. Transnet must act on the Werksmans report," Minister Brown said.

In January, Minister Brown told Parliament's Standing Committee on Public Accounts that if boards and executives of State-Owned Companies proved unable to do what's necessary to restore company credibility then their rotation was inevitable. –

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