Transnet says it will fully comply with a Special Investigating Unit (SIU) probe into property lease agreements dating back to the state capture administration.
Transnet says it will fully comply with a Special Investigating Unit (SIU) probe into property lease agreements dating back to the state capture administration.
The SIU has been galvanised into action by President Cyril Ramaphosa’s signing of a proclamation giving the investigation the green light.
The probe involves some of Transnet’s prime property leases and includes several high-value agreements, such as long-term leases for bulk fuel storage facilities at Transnet’s Ambrose Park Precinct in Durban, and the lease for the old Durban International Airport premises as well as properties at Jukskei Park.
Transnet national spokesperson Ayanda Shezi said they would comply fully with the investigation.
SIU spokesperson Kaizer Kganyago said the investigation covered allegations of misconduct dating from January 1, 2014, to August 23, 2024, and would include any related activities before or after this period.
“Recommendations will be made to prevent future losses”, and the scope would also encompass the procurement of goods, works or services related to these contracts, including leased accommodation and tenant installations.
The investigation aims to uncover “any unlawful or improper conduct by Transnet employees, suppliers, or service providers involved in these dealings,” Kganyago said.
The SIU reported to the standing committee on public accounts (Scopa) in late 2023 that it had concluded investigations into eight matters related to the findings of the State Capture Commission of Inquiry, and it was working closely with law enforcement agencies to expedite the tracing of the flow of funds within criminal syndicates, and money laundering companies that the SIU had uncovered.
The phase three probe, which looked into irregular personal protective equipment expenditure during Covid-19, also focused on allegations of corruption at the Transnet Property Operating Division.
“The investigation will specifically examine whether Transnet officials or agents acted corruptly or unduly to benefit themselves or others, leading to unauthorised, irregular, or fruitless and wasteful expenditure, or financial losses for Transnet. Beyond investigating maladministration, corruption and fraud, the SIU will identify systemic failures and recommend measures to prevent future losses,” Kganyago said.
Professor Irrshad Kaseeram, from the University of Zululand’s economics department, said the investigation was good news.
“It is highly commendable that President Ramaphosa is taking such bold measures to clean up the county. These measures are imperative in order for us to transform our economy and eradicate insidious corruption that is ubiquitous in the fabric of the South African economy and it augurs well for our future.”
Earlier this year, the SIU sued former Transnet head of property Zack Lebelo and Phathutshedzo Mashamba, who headed Transnet’s coastal properties division, for R12.7million as it sought `to recover funds lost to corruption and bribery at the state-owned company.
They were accused of receiving millions of rand in bribes, gratification, and secret profits tied to a series of dubious property deals.
Transnet is meanwhile pressing on with plans to sell off a portfolio of about R10billion of residential and non-core commercial properties over the coming two years, while moving to package the balance of the group’s investment properties into a single entity.
A full list of non-core property assets would be finalised by the end of the year, although there was already board approval for the sale of more than 5 000 residential properties, as well as its 17 hostels located across Johannesburg, Ekurhuleni, Tshwane, eThekwini, Nelson Mandela Bay, Cape Town and Mangaung.
The Mercury