Following a forensic investigation into alleged irregularities regarding the award and implementation of a multi-million rand tender, Transnet has suspended two senior employees at Transnet Freight Rail (TFR), pending the finalization of a disciplinary process against the pair.
The two employees have been charged with serious misconduct, including willful or gross negligence and manipulation of tender processes, in relation to the irregular award of a contract for security services at TFR. The governance breaches caused the company to incur irregular expenditure as contemplated in the Public Finance Management Act.
In line with the company's disciplinary procedures, the two employees were afforded a fair opportunity to make representations as to why they ought not to be suspended. This offer was not utilized. Subsequently, they were suspended.
The suspensions were deemed appropriate because of the seniority of the employees involved and the gravity of the allegations levelled by the company. The suspensions also became necessary to allow further investigations to be carried out without interference.
The contract in question was awarded in a confined process - meaning without an open tender process being conducted or other qualifying bidders being invited.
The confinement for the security services in question did not follow the required governance processes. The confinement was approved by the suspended chief executive of TFR, who did not have the requisite delegated authority, and is undergoing a disciplinary process, amongst others, in connection with this confinement.