SIU and Transnet
By Natalie Naidoo
The Special Investigating Unit (SIU) and Transnet have successfully signed multiple settlement agreements totalling over R31.4 million, following a Special Tribunal order that declared several contracts unlawful. This recovery effort aims to reclaim financial losses incurred by the state and reinforce accountability in public procurement.
Unlawful Contracts Exposed in SIU Investigation
The settlements come after a detailed SIU investigation, which exposed financial irregularities linked to two former Transnet executives. The findings revealed that these executives had allegedly received unlawful financial benefits amounting to approximately R10 million from service providers, namely Superfecta Trading 209 (now Dynamic Power Engineering) and BBDM Bros Advertising Agency.
According to the investigation, these illicit gains were used to acquire luxury properties, prompting legal action to recover misappropriated funds.
Special Tribunal Ruling and Contract Annulments
On 12 February 2025, the Special Tribunal ruled that the decision by the former Transnet Group Executive: Transnet Property to award contracts to Superfecta Trading 209 in 2016 and 2017 was unconstitutional, unlawful, and invalid.
The two contracts in question included:
• A 2016 contract for the installation of two generators at the Carlton Centre precinct.
• A 2017 contract for maintenance of electrical and mechanical services at the same location.
Both agreements were officially reviewed and set aside, reinforcing the SIU’s mandate to ensure compliance with procurement regulations.
Breakdown of Settlement Agreements
Following the Special Tribunal ruling, the SIU and Transnet secured settlements with multiple parties, ensuring financial restitution for the losses suffered.
- Dynamic Power Engineering (formerly Superfecta Trading 209)
The first settlement was reached with Dynamic Power Engineering, the company previously known as Superfecta Trading 209.
• Amount to be repaid: R21.4 million (net profits and legal costs).
• Repayment terms: Payments will be made over a three-month period.
• Reason for settlement: The Tribunal found the company’s contracts for generator installation and maintenance services at the Carlton Centre to be unlawful.
- Former Transnet Group Executive Zakhele Ezekiel ‘Thabo’ Lebelo and Family Trust
A second settlement was reached with former Transnet Group Executive: Transnet Property, Zakhele Ezekiel ‘Thabo’ Lebelo, along with his wife, Aletta Mokgoro Mabitsi, and the Thabo Lebelo Family Trust.
• Amount to be recovered: R5.2 million.
• Assets to be sold: Three preserved properties in Rosebank valued between R3.8 million and R4.2 million.
• Additional recovery method: Lebelo’s pension benefits from the Transnet Retirement Fund.
• Further liability: If the proceeds from these assets fall short, Lebelo and the Family Trust will be required to pay the outstanding balance.
• Legal fees contribution: R250,000.
- Former Transnet Regional Manager: Coastal Region, Phathutshedzo Mashamba and Wife, Matlhodi Phillicia Mashamba
The third settlement involved former Transnet Regional Manager: Coastal Region, Phathutshedzo Mashamba, and his wife.
• Debt settlement method: Recovery via Mashamba’s pension fund and the sale of a preserved property in Dainfern valued between R6.5 million and R6.8 million.
• Additional liability: If asset sales do not cover the debt, the couple must make additional payments in equal instalments over 12 months.
• Legal fees contribution: R250,000.
Government’s Commitment to Accountability and Good Governance
The SIU and Transnet emphasized that these settlements mark a significant step in implementing investigative outcomes and holding those implicated accountable.
“These settlement agreements continue the implementation of the SIU investigation outcomes and consequence management to recover assets and financial losses suffered by State institutions and/or prevent further losses,” said the SIU and Transnet in a joint statement.
The SIU further reiterated the government’s unwavering stance on enforcing transparency and ethical governance within state institutions.
Legal Framework and Further Prosecution Possibilities
The Special Investigating Units and Special Tribunals Act 74 of 1996 empowers the SIU to institute civil action in the Special Tribunal or the High Court to correct wrongdoing identified in its investigations.
Moreover, where criminal conduct is evident, the SIU is mandated to refer its findings to the National Prosecuting Authority (NPA) for further legal action.
What This Means for Future Investigations
The success of these settlement agreements demonstrates the effectiveness of the SIU in recovering public funds lost through unlawful procurement practices. It also serves as a warning to individuals and companies engaged in corrupt activities that government institutions are serious about enforcing compliance.
The SIU has confirmed that further investigations are underway, with the possibility of additional legal action against other individuals and entities found to be complicit in financial mismanagement at Transnet.
SIU and Transnet settle over R31.4 million in unlawful contracts
The Special Investigating Unit (SIU) and Transnet
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