IRREGULAR PLUNGE
Scopa rings bell on irregular spending at Transnet
The public accounts watchdog demands the Treasury review a number of Transnet contracts
The standing committee on public accounts (Scopa) has demanded that the Treasury review a number of Transnet contracts after MPs were left baffled by a sudden plunge in the state logistics company’s irregular expenditure. A Transnet delegation, led by CEO Siyabonga Gama, appeared before Scopa on Wednesday and told committee members that the parastatal had incurred about R25m in irregular expenditure and R3.9m in fruitless and wasteful expenditure in 2015-16. However, this raised MPs’ suspicions because Transnet had recorded R487m in irregular expenditure in 2014-15. Transnet clarified that its initial irregular expenditure in 2015-16 had been put at R254m, but it had instituted internal investigations which led to R229.8m being accounted for properly while about R25m had not been accounted for. MPs were also left angry after learning that Transnet had lost R2.2m to Wire Systems Technology through an advance payment guarantee. The company was awarded a tender but went into liquidatio...
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