CONTRACTS WORTH half a billion rand annually have been summarily cancelled by Portnet following an audit into black empowerment procedures and procurement systems. The contracts with more than twenty Durban companies were awarded during the time when Sipho Nyawo was based in Durban as assistant port manager. The companies affected have been advised that Portnet has cancelled their contracts and that their services will not be required from December 28, 1996.
Durban port manager Bax Nomvete has said that Portnet will be reviewing all contracts to ensure that they conform to Transnet's laid down Black Empowerment Policy. Spokesmen for the companies affected however claim they are being targeted because of their links with Nyawo.
FTW understands that Portnet intends to review and re-evaluate all contracts between now and December 28, in line with Transnet's new black empowerment programme, which is being implemented immediately throughout Transnet and which differs from the methods previously in use.
Men suspended pending further investigation In addition to the procurement contracts being cancelled, Portnet has suspended another three personnel who held positions involving the purchasing functions with the company, bringing the total of suspensions in Durban concerning procurement to five. Nomvete has said the suspensions were a result of financial irregularities leading to suspicion of bribery or backhanders.
Police raided two Portnet suppliers in Durban last week as part of an on-going investigation into procurement irregularities. It is understood that this latest action concerns services for which Portnet has been making payment over a number of years without any apparent services being rendered. A figure of several millions of rand has been quoted.
Police have opened a criminal case docket.
