Special Investigating Unit and Transnet granted order to interdict pension benefits of former executives
8 November 2023
The Special Investigating Unit (SIU) and Transnet have received an order from the Special Tribunal to interdict pension payout due to two former Transnet executives linked to fruitless and wasteful expenditure of approximately R33.5 million. In terms of the Special Tribunal order - dated 23 October 2023- Lerato Mary Theresa Makenete, former executive manager responsible for group business continuity and disaster management, and former executive manager for safety, Landela Hawkins Madubane are interdicted from withdrawing their pension benefits from Transnet Retirement Fund.
The pension funds of the former executives amount to R8.9 million. The pension funds will remain interdicted pending a finalisation of an application to be brought against former executives. Transnet initiated and called on the support of the SIU to investigate this matter and requested the support of the SIU to expand and complete the investigations. An investigation by the SIU into the affairs of Transnet has revealed that Makenete and Madubane allegedly colluded with three service providers to abuse Transnet's emergency procurement process during Covid-19. During the emergency procurement process at the height of the Covid-19 pandemic in April 2020, Transnet contracted -Ramoyadi Air Conditioning, Ndzalo2 Trading, and Eagles Ropes –to deliver over a million disposable breathalyser straws.
Makenete and Madubane allegedly colluded with suppliers to defraud Transnet by Inflating the price of the straws from R0.29 per straw to R29.99 per straw, resulting in a total payment of R33 834 698.40. The SIU and Transnet have instituted civil action in the Special Tribunal to review and set aside the contracts and recover financial losses suffered by Transnet due to overpayment of approximately R33.5 million. Following the conclusion of the investigation, the SIU made disciplinary referral to Transnet against Makenete and Madubane. Transnet actioned the referral, however, they both failed to appear for disciplinary hearings, but the proceeding continued in their absence.
The duo was found guilty and dismissed. The order of the Special Tribunal is part of the implementation of SIU investigation outcomes and consequence management to recover financial losses suffered by State institutions because of corruption or negligence. The SIU was, in terms of Proclamation R23 of 2020, directed by President Cyril Ramaphosa to investigate allegations of corruption, maladministration, malpractice and payments made by State institutions relating to personal protective equipment (PPE) procurement together with the conduct of State employees.
The SIU is empowered to institute civil action in the High Court or a Special Tribunal in its name to correct any wrongdoing uncovered during investigations, caused by acts of corruption, fraud, or maladministration. In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU refers any evidence pointing to criminal conduct it uncovers to the National Prosecuting Authority (NPA) for further action.
Issued by Kaizer Kganyago Spokesperson, Special Investigating Unit, 8 November 2023
