More suspensions are looming at Transnet – Popo Molefe | Company

Transnet board chairman Popo Molefe has warned that a "long list" of employees can be suspended or confronted with criminal charges, with the possibility of reclaiming recovered funds from the company.

"We are definitely looking for more people," said Molefe, after meeting Parliament's Standing Committee on Public Accounts (Scopa).

This week, three Transnet executives, including CEO Siyabonga Gama, received suspension notices following investigations that revealed possible misconduct.

MORE: Transnet CEO Gama, two other civil servants suspended

"That was just a start – the list is long, some people have left the company, but we're going to pursue them and possibly filing charges if it's determined was of criminal intentions, "said Molefe.

Molefe said that the Scopa hearing gave some "scary revelations that the board did not know", including what he called "blatant disregard by management for their responsibility to the company".

"There is also a degree of intimidation of the staff.
It is very frightening. "

" That kind of environment causes unbridled corruption and theft, "he added.

Qualified accounts

The Scopa hearing – intended to determine the depth of financial mismanagement at the company – detailed Cases of financial mismanagement at a high level, neglect of the tendering process and questionable deviation from the tender processes used to plunder the organization.

The hearing is because Transnet has to publish its financial reports on Monday, showing that it has been obtained a qualified audit.

The notifications of suspension for Gama, Thamsanqa Jiyane, Chief Advanced Manufacturing Officer and Supply Chain Manager Lindiwe Mdletshe, followed by the publication of reports by Werkmans Advocaten and MNS Advocaten, who investigated problems of financial misconduct at Transnet. [19659002] The misconduct relates to violations in terms of tender, as well as the Constitution and other legislation, including the Companies Act and the Public Finance Management Act (PFMA).

The executives are given until Monday to justify why they should not be suspended.

Gama attended the Scopa hearing.

& # 39; Acting as syndicates & # 39;

During the meeting, Molefe complained that the new board did not receive the cooperation it needed from the management of Transnet when it came to eradicating corruption and mismanagement.

"We do not get the cooperation from management, they deliberately act as syndicates, they seem to have sworn to secrecy," he said, saying that the board could undermine the financial disorder.

Scopa chairman Themba Godi said that qualified accounts have significant implications because the company has large debts. 19659002] "It is a violation of the conditions for their lenders," he said.

"It also carries the risk of defaulting, and when that happens, they will most likely find a bailout, that's money we do not buy as a country," he said.

Board member Dimakatso Matshoga told the meeting that the board had met creditors to assure them that the company would be able to meet its borrowing obligations.

Scopa members were also not satisfied with the decision of the state enterprise to relocate its offices from the iconic Carlton Center in the center of Johannesburg to a newly rented building north of the city.

The company said the move was intended to curb the maintenance costs for the 50-story building, which will undergo a renovation for an estimated three-year period. – Fin 24

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