Transnet Faces Scrutiny as SIU Begins Investigation into Property Leases

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Transnet says it has identified and isolated source of IT disruption

Transnet on SIU

By Mpho Moloi


Pretoria – Transnet is under intense scrutiny as President Cyril Ramaphosa has signed Proclamation 174 of 2024, authorising the Special Investigating Unit (SIU) to investigate allegations of serious maladministration within the state-owned enterprise. The investigation, announced by SIU spokesperson Kaizer Kganyago, is set to probe the procurement processes and contractual agreements related to the leasing of properties owned or controlled by Transnet, with a focus on identifying and recovering any financial losses suffered by the State or Transnet.

The SIU’s investigation will examine whether Transnet officials, employees, or agents acted improperly or corruptly to benefit themselves or others, resulting in unauthorised, irregular, or fruitless and wasteful expenditure. The leases under scrutiny include 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.

Kaizer Kganyago, representing the SIU, outlined the broad scope of the investigation, which will 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.

The proclamation covers allegations of misconduct dating from 1 January 2014 to 23 August 2024, and will also include any related activities before or after this period that are relevant to the matters under investigation. The SIU is tasked with not only uncovering instances of maladministration, corruption, and fraud but also identifying systemic failures within Transnet that may have allowed such practices to occur. Recommendations will be made to prevent future losses.

In accordance with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU will refer any evidence of criminal conduct uncovered during the investigation to the National Prosecuting Authority (NPA) for further action. Additionally, the SIU has the authority to initiate civil action in the High Court or a Special Tribunal to address any wrongdoing identified during its investigation.

This investigation follows a series of recent SIU probes into state entities, including the investigation into the National Department of Public Works’ leasing of government buildings and the probe into COVID-19 related procurement irregularities across various departments.

SIU
SIU

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