The South African Transport and Allied Workers Union (Satawu) has called on Transnet to suspend a senior executive official for his alleged role in the irregular awarding of a R300 million tender to a former employer (*).
Satawu issued a statement on Wednesday claiming that the senior official is “facing serious allegations of corruption and mismanagement.”
His name is known to Freight News (**) but has been withheld from publication at this stage so he and Transnet may be afforded the opportunity to respond to the allegations.
“The entity (Transnet) has confirmed that it has launched its internal investigations following R300 million tender … allegedly awarded to his former employer irregularly,” Satawu said.
The union had called on Transnet management, board members, Acting CEO Michelle Phillips and the Minister of Public enterprises to take action against the official.
Satawu also accused the official of appointing “close allies”, who do not meet the minimum criteria for the job, into top positions.
“Satawu strongly believes that (the official) has no interest in growing and rescuing Transnet. The entity is collapsing because of people like him who are only occupying those offices for their own personal interests.”
Satawu said the official must be treated as an employee of the state-owned entity which “has suspended many executives who are accused of similar offences, pending these allegations”.
The union insists that the official be suspended “with immediate effect”.
“We, therefore, are of the opinion that (the official) must be on suspension to allow the process to take its course and to avoid threats, intimidation and tampering with evidence. There is absolutely nothing special about him, why is he still in the office?”
Satawu said it “acknowledges” Transnet for the action taken against previous leaders, but this was not enough to end corruption.
“If the entity is serious about fighting corruption, they must prove it to the people of this country now. The organisations will make a follow up and request an urgent meeting with the management to take this further,” Satawu said.
Transnet had not responded to questions at the time of going to print except to say that the matter had been referred to the entity’s legal team to be investigated. It said a statement would be issued in due course.
Phillips told Freight News that the logistics utility had approached Satawu to provide evidence in support of its allegations.
She said to date, nothing had been received, and the matter had been referred to the relevant legal representatives.
“We can’t dismiss someone without following the proper channels.”
* At about 16:30 on January 24, Transnet confirmed that a statement had been prepared to respond to Satawu’s claims. It will be added as an update to this report once received.
** Transnet has since confirmed that the official in question is Pepi Selinga, chief executive of TNPA.
Transnet responds:
Transnet SOC Ltd has received a number of allegations against Transnet National Ports Authority (TNPA) management, more specifically, its Chief Executive, Pepi Silinga.
Transnet has a zero-tolerance stance on corruption and malfeasance, and views these allegations in a serious light. We wish to assure all stakeholders that Transnet will leave no stone unturned and will, at the appropriate time, take full disciplinary action against anyone involved in irregular conduct.
Transnet is working tirelessly to restore the confidence of stakeholders in its operations, its finances and its governance framework.
The allegations relate – in the main – to the flouting of procurement processes. Transnet has, on a continued basis, officially requested evidence in this regard to enable the appropriate action to be taken. This has, however, not been forthcoming.
Transnet has consequently appointed an independent law firm to undertake an in-depth investigation. The matter has also been referred to the Senior Investigative Unit (SIU), which acknowledged receipt of the referral and will proceed with the investigation. Transnet welcomes the SIU involvement and is cooperating fully with the process.
Should prima facie evidence become available during these investigations, Transnet will not hesitate to invoke the relevant processes in line with the company's policies, laws of the country, and to take the necessary disciplinary action.
The matter is being treated with the urgency and seriousness it warrants.
Further updates will be provided upon conclusion of the investigations.
