Dodgy locomotive staff leave Transnet

State-owned freight, rail and logistics group Transnet says all employees involved in its four controversial contracts for the acquisition of more than 1,000 locomotives have resigned or have been dismissed as it battles to restore credibility.

“All those responsible have left Transnet’s employment. Transnet dismissed three employees. Others involved have resigned,” Sandra Coetzee, Transnet chief legal officer, told MPs on Wednesday.

She did not say how many implicated staff resigned. Coetzee was updating the select committee on public enterprises and communication on internal investigations and alleged misconduct by Transnet employees.

Transnet signed the contracts amounting to R54.4bn to acquire the locomotives in March 2014 in one of the largest procurement initiatives by a stateowned entity (SOE). The deal was signed with South China Rail, North China Rail, General Electric (GE) and Bombardier Transportation in the renewal of Transnet’s rolling stock.

The initial estimated price of the locomotives tender was R38.6bn, but it soon shot up to R54.4bn amid claims of corruption in awarding the contracts. The Gupta family, friends and business partners of former president Jacob Zuma and his son Duduzane, were alleged to have received millions of rand in kickbacks, according to testimony at the state-capture inquiry chaired by then deputy chief justice Raymond Zondo.

Transnet and the Special Investigating Unit (SIU) have since lodged a high court application to review and set aside the four controversial contracts. The case continues.

Coetzee said criminal and civil referrals had been made against staff involved in the transactions; “consequence management is being enforced.

“Most of the resignations that occur, occur on the strength of the charge sheet that is being presented to the individuals. We have also introduced independent presiding officers to ensure that the disciplinary hearings are fair and enforceable,” she said.

Transnet executives briefed MPs on plans to expand and upgrade ports to boost capacity and efficiency. Transnet is hamstrung by ports operating issues such as ageing, out-of-service infrastructure and congestion, particularly in Cape Town, Durban and Richards Bay. Many exporters and imports are frustrated and fear huge losses.

The company said it set aside at least R4bn this financial year for upgrades and maintenance of ports. Transnet National Ports Authority (TNPA) CEO Pepi Silinga said that port planning was, as is the case with many infrastructure projects, a highly iterative and consultative process, suggesting that upgrades could take years to finalise.

Referring to Durban, Silinga said the company had gone through various iterations since October 2020 with a view to ensuring that the ports met user requirements.

In Cape Town, the authority’s targets include expansion of the container terminal in a “manner that balances the availability of capacity on the water side with the availability on the land side”.