‘We knew this day would come’ − Crackdown on irregular appointments, payments at Transnet

Alleged illegal salary package increments and irregular appointments at the behest of senior managers are under scrutiny at the crisis-plagued Transnet.

According to insiders, deviation from human resources policies is rampant at the transport entity.

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Last week, investigators directed the human resources unit to provide information on about 100 appointments and packages suspected to be irregular.

These include email correspondence, employment contract offers and other relevant information.

All appointments made at a whim are part of an investigation by a law firm into allegations of fraud, corruption and mismanagement at Transnet.

Suspicious employment contracts

Requests for unjust salary hikes were sometimes made through phone calls to human resources staffers, sources said.

“A person earning R500 000 annual salary would suddenly earn a million rand because an executive says so.

“No top manager has put their name and signature on the salary hikes they requested. It is the low-ranking managers who implement such that might find themselves in trouble,” said one source.

A marathon meeting with investigators held last week has laid bare the internal rot at Transnet, said another.

“They are scrutinising employment contracts to check if everything was done properly and according to proper recruitment processes.

“They are also verifying deviations. Where policies were not followed, information as to why that was done must be submitted,” said the insider.

Illegal decisions probed

Another source said she knew the day would come when the alleged underhanded decisions would come under scrutiny.

She said matters worsened after the 2020 arrival of Pepi Silinga, the ex-CEO of the Eastern Cape government’s Coega Development Corporation (CDC).

He was appointed CEO of Transnet National Ports Authority (TNPA) and worsened the already fractured hiring processes, the source said.

Silinga faces allegations of maladministration, fraud and corruption and took leave of absence a few weeks ago.

“Many of us knew this day would come. The deviation from human resources policy and random salary hikes in favour of those close to bosses are in the spotlight now.

“Some instructions were in writing, while others were phone calls to human resources. The smart ones just drafted the contracts or salary increase documents but refused to sign them.”

Silinga is alleged to have hired his associates from the CDC in strategic positions at TNPA.

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He is also being investigated for allegedly awarding CDC an R80 million tender to upgrade fencing at Saldanha Bay, Richards Bay and Durban ports in 2022.

Silinga reportedly awarded the fencing tender to the same service provider that handled fencing for CDC, while he was the CEO.

The tender was flagged after it ballooned from R80 million to a whooping R300 million.

Union hands over dossier

Cosatu affiliate SA Transport and Allied Workers Union (Satawu) announced last week that it handed files containing evidence of corruption, irregular appointments and mismanagement against Silinga.

Its general secretary, Jack Mazibuko, said the safety of whistleblowers should be taken seriously.

“Satawu suggested that whistleblowers be protected at all costs as it is in line with Transnet policies. We are also aware of threats and tensions within the entity, at TNPA to be specific.

“We also suggested that the findings of these serious investigations be presented at the same time to both Satawu and Transnet management when the investigation is done.”

He added that the Passenger Rail Agency of SA (Prasa) and Transnet are about to collapse because of irregular appointments and mismanagement.

‘Zero tolerance for corruption’

Transnet spokesperson Ayanda Shezi said the entity is not aware of any devious hiring and salary increment practices.

The SOE is also not aware of any improper hiring of people at the behest of top managers, she added.

“Transnet is not aware of such instructions being issued. The organisation has robust processes in place that govern matters of this nature.

“Anyone with the relevant information to support what is alleged is encouraged to report this so it can be investigated and the necessary action taken. Reporting can be also done anonymously, through the tip-offs hotline.

“Transnet has zero tolerance for corruption and views the allegations levelled in a serious light,” she said.

Regarding allegations against Silinga, Shezi said Transnet awaits the outcome of the ongoing probe against him.

Beset by rail and ports logistical crisis, Transnet is one of the SOEs that were looted by the fugitive Gupta family and their politically-connected associates during the state capture years.

Last year, Finance Minister Enoch Godongwana warned that the poor-performing Transnet is posing a fiscal risk to the economy.

Godongwana did not allocate any bailouts to Transnet in his 2024 Budget speech tabled in parliament last week.

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