Transnet must shed light on tender to manage R40 billion property portfolio

The DA welcomes the announcement today that Werksmans has been hired as an external firm to probe allegations of widespread corruption at Transnet. Importantly, the DA is concerned that a recent Transnet tender, given its size – comparable to the arms deal – would be very vulnerable to corruption given the depth of corruption which has already been exposed at Transnet.

A Request for Proposal (RFP) that was issued by Transnet for “the development and implementation of a holistic and sustainable non-core property solution for Transnet that achieves improved profitability”. The RFP was issued on 26 April 2017 and closed on 13 June 2017. As of 31 March 2016, Transnet’s property portfolio was valued at R40 billion – a significant figure that would be very enticing for those with intentions of looting.

There are rumours swirling that Gupta-linked entities may be interested in this tender. It is imperative, given the sheer nature of this deal and in light of the far-reaching stories of State Capture by the Gupta family, that Parliament has oversight over this tender to ensure that there is no corruption in this deal.

I have thus written to the acting Chairperson of the Portfolio Committee on Public Enterprises, Ms Zukiswa Rantho, to request that we receive an urgent briefing on this tender.

I will also be submitting Parliamentary Questions related to this matter to uncover whether there were any irregularities in the tender process.

These questions include:

Whether the Guptas or any of their associates were involved in, or given preferential treatment/ access to any material, at any stage of the tender process?

What is the total value of Transnet’s property portfolio at present and what are the values of the core and non-core property holdings?

How many companies responded to the RFP and what are their names?

Where and when was the RFP published or advertised, and for how long?

The value of Transnet’s property portfolio is substantial and the tender process must be thoroughly investigated to protect the parastatal from being looted. Billions of rands which could have helped South Africa’s poor have been stolen through State Capture and the DA will not allow any more parastatals to be captured.

Statement issued by Natasha Mazzone MP, DA Shadow Minister of Public Enterprises, 4 July 2017