Transnet Continues To Act On Procurement And Governance Matters
Transnet SOC Ltd (“Transnet”) has noted recent reports
regarding procurement-related matters at one of its operations, and wishes to provide clarity
on the actions it has taken to address allegations of irregularity and strengthen governance,
accountability and controls.
Transnet takes allegations of procurement irregularities seriously. In October 2024, Transnet
Port Terminals (TPT) received a whistleblower report alleging irregularities relating to two
tenders. TPT Chief Executive Jabu Mdaki immediately instituted an internal investigation into
the allegations. Following the outcome of this process, an external forensic investigation was
also commissioned and undertaken by Fundudzi Forensic Investigations.
The preliminary findings of the external investigation, received in April 2026, resulted in the
precautionary suspension of the Managing Executive responsible for TPT’s Richards Bay
operations. Transnet is implementing the recommendations arising from the investigation,
while further investigations into other matters raised in the preliminary report remain
underway. The preliminary report made no findings against the TPT Executive Committee.
These investigations have resulted in tangible action, including the restriction of seven
companies through National Treasury processes, and disciplinary action against employees
implicated in theft, corruption and fraudulent activities. To date, 45 employees, including
managers, have been dismissed.
A number of investigations and disciplinary processes remain underway, including matters
relating to Richards Bay Terminals. Where necessary, these processes are being pursued in
collaboration with relevant law-enforcement agencies. In this regard, following the Fundudzi
investigation, Transnet has logged a formal complaint with the Directorate for Priority Crime
Investigation (DPCI) in terms of section 34 of the Prevention and Combating of Corrupt
Activities Act. The matter has been referred to the Durban Serious Corruption Investigation
Unit.
Transnet is also strengthening its governance and control environment in response to the
findings and recommendations arising from these processes.
Transnet has also noted unsubstantiated statements in recent reports regarding the alleged
involvement of certain executives in the blacklisting processes. While Transnet respects the
role of the media in reporting matters of public interest, it is important that allegations are
appropriately verified and that reporting reflects the available facts.
Several of the executives named were either not employed by Transnet or were not involved
in the relevant process when the blacklisting process commenced in April 2022. The
blacklisting process fell within the relevant Governance functions, and the individuals
concerned did not have a role in processing the matter.
Transnet remains committed to the highest standards of governance, accountability and
integrity and maintains a zero-tolerance stance towards fraud, theft, corruption and any form
of impropriety. The organisation will investigate credible allegations, take appropriate action
where wrongdoing is established and strengthen its controls to protect the integrity of its
operations.
Further information will be provided at the appropriate time, subject to the requirements of
ongoing investigations and applicable law.
Issued on behalf of Transnet SOC Ltd
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