TRANSNET DISMISSES TWO SENIOR SECURITY MANAGERS AT TFR

Further to a statement issued by the Company on November 29 2009, Transnet announces that it has dismissed two senior managers in charge of security at Transnet Freight Rail (TFR) following the conclusion of an internal disciplinary process. The summary dismissal is in line with the recommendation of an independent and external chairman of the disciplinary hearing of the two.

The two were found guilty of dishonesty and misconduct and all the charges they faced in relation to their duties as TFR employees.

The pair was suspended and subsequently charged with misconduct in connection with their role in manipulating a tender process which led to the award of a tender for security services at TFR. The contract in question was awarded in a confined process - meaning without an open tender process being conducted or other qualifying bidders being invited - and without following the required governance processes.

Transnet is committed to upholding the highest standards of corporate ethics and governance. Employees are expected to comply with all company policies and procedures and act in accordance with the company's values which, amongst others, demand that they act with integrity and in a manner that inspires trust and honesty. Apart from guidance by their consciences, all employees are bound by a compulsory code of ethics. Non-compliance with these basic requirements will not be tolerated and employees will be called to account.

It is important that all suppliers and business associates are given a fair and equitable opportunity to do business with Transnet.

The company is determined to act against governance breaches that bring its good name into disrepute.

Statement issued Transnet spokesman John Dludlu, March 17 2010

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