Former Transnet CEO Siyabonga Gama. Picture: FINANCIAL MAIL
Former Transnet CEO Siyabonga Gama. Picture: FINANCIAL MAIL

Transnet, one of the country’s most strategic state-owned enterprises (SOEs) should consider recovering tens of millions of rands paid to consultancy firms McKinsey, Trillian and Regiments Capital.

This is according to a report by Fundudzi Forensic Services, commissioned by the Treasury.

It has also been recommended that the report be handed to the Hawks for criminal investigation.

The report found that Transnet paid a total of R3.26bn to McKinsey, Trillian and Regiments. The payments were made from the time McKinsey was appointed by Transnet in 2005 to 2017 and includes payments made to the three in respect of six projects. 

Fundudzi was mandated, among other things, to investigate allegations of irregularities pertaining to the appointments of the three firms. 

According to the report, Transnet paid McKinsey almost R2bn including VAT between March 2005 to the financial year ended March 31 2016. 

The SOE had paid Regiments Capital a little more than R1.08bn including VAT between March 1 2013 and the financial year ended March 31 2017. Trillian received a total of R115m between April and May 2016 — within four months of its appointment.

The report has recommended that former Transnet executives Brian Molefe, Siyabonga Gama, Garry Pita, Anoj Singh, Edward Thomas and Phetolo Ramosebudi have criminal investigations undertaken into their actions. 

Fundudzi complained that it took Transnet 32 months to release documents relating to McKinsey, Regiments and Trillian, which slowed down the investigation. 

Delays in submitting documents resulted in losing critical evidence and delays in conducting investigations gave officials the opportunity to resign before facing disciplinary processes.