Transnet gets a drubbing in parliament over pipeline costs

Transnet has come under fire in Parliament over the dramatic increase in construction costs of a new pipeline between Johannesburg and Durban. Transnet was also in the spotlight in Parliament last Wednesday for failing to provide information and steps taken following the Dube station explosion on February 9 this year. Calling for a ‘hands-on’ approach to state-owned enterprises like Transnet, Peter Maluleke, the chairman of the Portfolio Committee on Public Enterprises, asked during a committee meeting why the department of public enterprises had not given details of the increase in costs of the pipeline or the explosion. Politicians said Transnet and the Department had failed to explain why the cost of building the 550km pipeline from Durban to Johannesburg, which stood at R11bn in 2007, had risen to R23.4bn last year. Neither has the utility provided answers about the explosion. The committee felt that more emphasis needed to be put on the engagement between Parliament, DPE and SOEs, with increased oversight where necessary. Some of the committee members want to visit the factory where the explosion took place. Maluleke said he had written both to the department and Transnet requesting information about what had happened, what measures had been put in place and what of the future. He was still awaiting a response but noted that these were serious matters to which the committee demanded answers. He suggested that the Committee visit the factory where the explosion occurred to get answers.