Transnet under fire over R824m Richards Bay tender investigation
Placosa has accused Transnet of failing to properly account for alleged procurement irregularities involving R824 million worth of materials-handling equipment contracts at its Richards Bay operations. The organisation is demanding an independent investigation into senior executives, while Transnet says its forensic probe has resulted in suspensions, 45 dismissals, the restriction of seven…
A coalition of labour and civil society groups, Professionals and Labour Civil Organisation of South Africa (Placosa), has accused state-owned railway and port operator Transnet of inadequate investigation into alleged corruption and collusion in procurement processes linked to R824 million worth of contracts at its Richards Bay port.
Placosa members have protested outside Transnet offices in Richards Bay and handed a memorandum to Transnet Port Terminals' executive management, demanding greater accountability and transparency in procurement procedures. Placosa asserts that investigations by the Special Investigating Unit and Transnet have failed to identify those responsible for wrongdoing, describing the process as merely "window-dressing".
The allegations pertain to two tenders, valued at a combined R824 million, awarded to High Power Equipment Africa (HPE Africa) between 2023 and 2024 for work related to Transnet's Richards Bay operations. Placosa claims that senior executives have been protected while lower-level employees have been held accountable. The organization remains unconvinced by Transnet's internal and external investigations, stating that a recent internal forensic investigation was a "protection mechanism" for top executives accused of corruption and collusion.
Transnet has denied the accusations, stating it has taken disciplinary and investigative action following whistleblower allegations. The company claims that the preliminary findings from an external forensic investigation led to the precautionary suspension of a managing executive responsible for TPT's Richards Bay operations. Transnet further asserts that it has implemented recommendations from the investigation, restricted several companies through National Treasury processes, and dismissed 45 employees in connection to theft, corruption, and fraudulent activities. Transnet has also referred a formal complaint to the Hawks regarding the Fundudzi investigation.
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