The Special Investigating Unit (SIU) and Transnet have received an order from the Special Tribunal to interdict pension payouts that were due to two former Transnet executives linked to fruitless and wasteful expenditure amounting to about R33.5 million.
In terms of the Special Tribunal order, Lerato Mary Theresa Makenete, the former executive manager responsible for group business continuity and disaster management, and Landela Hawkins Madubane, the former executive manager for safety, are interdicted from withdrawing their pension benefits from the Transnet Retirement Fund.
SIU spokesperson Kaizer Kganyago said in a statement on Wednesday that the pension funds of the former executives amounted to R8.9 million.
“The pension funds will remain interdicted pending the finalisation of an application to be brought against former executives. Transnet initiated and called on the support of the SIU to investigate this matter, and requested the support of the SIU to expand and complete the investigations,” Kganyago said.
“An investigation by the SIU into the affairs of Transnet has revealed that Makenete and Madubane allegedly colluded with three service providers to abuse Transnet’s emergency procurement process during Covid-19.”
He said that during the emergency procurement process at the height of the Covid-19 pandemic in April 2020, Transnet contracted three companies – Ramoyadi Air Conditioning, Ndzalo2 Trading and Eagles Ropes – to deliver over one-million disposable breathalyser straws.
Makenete and Madubane allegedly colluded with suppliers to defraud Transnet by inflating the price of the straws from R0.29 per straw to R29.99 per straw, resulting in a total payment of R33 834 698.40.
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 the overpayment of approximately R33.5 million.
“Following the conclusion of the investigation, the SIU made disciplinary referral to Transnet against Makenete and Madubane,” Kganyago said.
“Transnet actioned the referral. However, they both failed to appear for disciplinary hearings. But the proceeding continued in their absence. The duo were found guilty and dismissed.”
The order of the Special Tribunal is part of the implementation of SIU investigation outcomes and consequence management to recover financial losses suffered by state institutions because of corruption or negligence.
The SIU was, in terms of Proclamation R23 of 2020, directed by President Cyril Ramaphosa to investigate allegations of corruption, maladministration, malpractice and payments made by state institutions relating to personal protective equipment (PPE) procurement together with the conduct of state employees.
