Transnet has launched an investigation into the awarding of a contract for an Outcomes Based Security (OBS) solution after media reports alleged there had been irregularity in its tender process.
This comes after Transnet Freight Rail awarded security contracts to five Security Service Providers (SSPs) to combat theft and vandalism on its rail network, which has led to a loss of revenue and increased security and maintenance costs.
Transnet said in a statement this week that the company had followed an open and competitive bidding process and had undergone a comprehensive bid evaluation procedure in the awarding of the contract after issuing a request for proposals on 10 August, 2022.
“The process of bid evaluation and award is conducted through various governance committees and is not determined by any single individual,” said Transnet.
However, in recent weeks, there have been media reports casting doubt on the integrity of the OBS tender process that resulted in the Fidelity Security Services Group being appointed one of the OBS SSPs.
“In view of allegations made by the African Security Congress in correspondence to Transnet and in the media, Transnet has, as a measure of diligence, commissioned an investigation to determine the facts and associated circumstances with regard to the allegations pertaining to the award of the tender,” the ports and rail operator said.
“It will be premature to comment or ascribe any accountability prior to the completion of the investigation.”
Wahl Bartmann, CEO of Fidelity Services Group, told Freight News on Thursday that Transnet had followed “an open and competitive bidding process” through various governance committees.
He said the company would fully co-operate with the investigation.
“Fidelity was one of five successful security providers to be awarded the contract for a holistic end-to-end solution for one of the corridors. We are pleased to report that currently, crime has been reduced by 75% in our corridor,” said Bartmann.
“We are committed to providing any factual evidence required to assist in the investigation of the tender. Fidelity is a fully legally compliant business and adheres and respects all laws and regulations in terms of tender processes. We will fully co-operate and welcome any investigation.”
Transnet said it was “regrettable” that the “peddled narrative” in media reports was that the cancellation of a 2021 tender for the manufacture of a Contact Wire Reflector (CWR) device on behalf of Transnet had been motivated to allow for the award of the Fidelity Group as one of the OBS SSPs.
It said the scope of services of the CWR and OBS tenders were entirely unrelated. “The CWR tender called for the manufacturing of the CWR device developed and patented by Transnet, whereas the OBS tender calls for real-time prevention and detection of theft and vandalism in TFR operations,” said Transnet.
It said an independent investigation into the CWR tender commissioned by Transnet in 2022 had confirmed that Fidelity did not respond with a bid to the request for proposals regarding the manufacturing of the CWR device.
“Transnet has zero tolerance for collusion and corruption and therefore, should Transnet be presented with factual evidence of such conduct, Transnet will reopen the matter,” the company said.
