Riding the Transnet gravy train
Transnet’s ‘sterling’ financial results are overshadowed by growing allegations, of irregularly awarded locomotive contracts, against its CEO
Transnet’s annual results presentation on Monday couldn’t have come at a worse time for its CEO, Siyabonga Gama. Though marred by irregular expenditure of R8.1bn since 2005, Transnet delivered what it called "a sterling set of financial results". Steady growth in vehicle, coal and container volumes increased profits 75% to R4.9bn and revenue was up 11.3% to R73bn. Just days earlier, however, Gama was handed a suspension notice based on three damning draft reports of investigations into allegations of corruption and mismanagement at the state-owned rail and ports operator. The reports, seen by the FM, detail evidence implicating Gama and other executives in irregularities in three locomotive deals worth more than R60bn that led to billions of rands in alleged kickbacks flowing to Gupta-linked firms in Hong Kong and Dubai. Unlike former Transnet CEO Brian Molefe and then CFO Anoj Singh, so far the investigations do not implicate Gama directly in corruption. But the draft reports, incl...
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