COSATU welcomes proclamation to investigate Transnet
28 August 2024
The Congress of South African Trade Unions (COSATU) welcomes the proclamation issued by President Cyril Ramaphosa authorising the Special Investigating Unit (SIU) to probe allegations of serious maladministration at Transnet and to recover any financial losses suffered by the entity.
The proclamation gives the SIU the go-ahead to investigate the procurement processes and contractual agreements linked to the leasing of properties belonging to or controlled by Transnet or the state. The probe will zone in on leases that were possibly facilitated through fraudulent means by Transnet employees, officials, agents, etc.
Leases to be probed include agreements for the construction and operation of bulk fuel storage facilities at Bayhead in Durban, the leasing of the old Durban International Airport premises including the runaway, apron, taxiways, ATNS building and SAA site, the film studios at Carlton Centre among others. The SIU will also investigate agreements with service providers, the procurement of goods, accommodation, and payments made by Transnet related to these contracts.
The proclamation covers serious allegations of unlawful and improper conduct between 1 January 2014 and 23 August this year.
COSATU welcomes the investigation and has no doubt it will uncover maladministration that contributed to the state-owned company’s failure to effectively service the key economic sectors of mining, agricultural and industrial. Paired with the challenges at Eskom, Transnet’s dismal performance in recent years have had a devastating impact the economy’s ability to grow, save and create badly needed jobs, and generate revenue the state requires to fund critical public services.
Transnet is currently undertaking interventions to ensure it becomes a fully functional logistic utility once more, even as it is saddled with a R130 billion debt burden. Despite this, the Federation is hopeful at the prospect of the SIU recovering the millions of Rands syphoned off from the state entity.
We are encouraged by government’s efforts to revitalise state-owned entities by transferring the administrative powers and functions to the line ministers. COSATU hopes with the help of newly appointed Minister of Transport, Barbara Creecy, Transnet will navigate its way back to efficient operation. This is fundamental if we are to unlock the economy, stem retrenchments and create jobs, and rebuild the state.
Issued by Zanele Sabela, National Spokesperson, COSATU, 28 August 2024
