SIU blocks pension funds of two Transnet executives implicated in R33m straw tender

Former Transnet executives embroiled in a R33m tender for the procurement of straw breathalysers have been prevented from withdrawing their respective pension fund benefits worth R8.9m.

The Special Investigating Unit (SIU) was granted a special interdict by the Special Tribunal to block the pension funds of former executive manager responsible for group business continuity, Lerato Mary Theresa Makenete and former executive manager for safety, Landela Hawkins Madubane.

The pair are being investigated for allegedly inflating the price of straw breathalysers by almost 10,000% during the height of the Covid-19 pandemic. According to a report by the SIU, the pair colluded with three service providers, Ramoyadi Air Conditioning, Ndzalo2 Trading, and Eagles Ropes to deliver more than 1-million disposable breathalyser straws. The straws were originally priced at 29c each but Transnet was charged R29.99 per straw.

“Following the conclusion of the investigation, the SIU made a disciplinary referral to Transnet against Makenete and Madubane. Transnet actioned the referral, however, they both failed to appear for disciplinary hearings, but the proceeding continued in their absence. The duo was found guilty and dismissed,” the SIU’s spokesperson Kaizer Kganyago said in a statement on Tuesday.

“The SIU and Transnet have instituted civil action in the Special Tribunal to review and set aside the contracts and recover financial losses suffered by Transnet due to overpayment of approximately R33.5-million.”

maekot@businesslive.co.za