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Top Transnet officials suspended amid graft probe

Publish date: 13 July 2017
Issue Number: 124
Diary: Legalbrief Forensic
Category: Forensic

Transnet said yesterday (Wednesday) that it has suspended senior officials, taken legal action and instituted disciplinary actions following its announcement last week that an external legal firm would probe allegations of corruption at the state-owned enterprise. A Fin24 report notes that during Transnet’s end-of-year results presentation last week, CEO Siyabonga Gama said an investigation by Werksmans will focus on the Gupta-linked Tequesta Group situated in Hong Kong, which allegedly raked in R5.5bn in kickbacks over three years, among other allegations. The report says this followed the #GuptaLeaks expose by amaBhungane Centre for Investigative Journalism in June, which revealed that Tequesta scored billions of rand in alleged kickbacks to help a Chinese firm win lucrative Transnet tenders. The investigation and the announcement yesterday also comes after Transnet’s external auditors, SizweNtsalubaGobodo, last week reported irregularities to the Independent Regulatory Boards of Auditors (IRBA) as part of the year-end financial audit, according to the report. ‘The reportable irregularities relate to non-compliance and non-adherence to stipulated internal procurement processes and requirements of law in procurement contracts entered into between Transnet and various service providers by a number of senior officials,’ Transnet treasury compliance manager Bruce Gotha said in a statement yesterday.

Full Fin24 report