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Not all deals at Transnet went through prescribed processes – acting CEO

15th May 2019 BY: African News Agency
Acting Transnet CEO Mohammed Mahomedy
Photo by: Creamer Media's Dylan Slater
Acting Transnet CEO Mohammed Mahomedy

Not all transactions at State-owned logistics company Transnet were handled in compliance with stipulated processes, acting CEO Mohammed Mahomedy told the commission probing graft on Wednesday.

"What we found was that certain transactions were approved through normal processes and some of the transactions did not go through governance processes prescribed," Mahomedy told the Zondo commission of inquiry into State capture, citing the example of the overturned appointment of phone company Neotel as a service provider in 2013.

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"From the 20th of November 2013, a memorandum was signed by then chief executive of Transnet, Brian Molefe nullifying the decision of the people that approved the memorandum of the 31st of October," Mahomedy testified, saying Molefe went on to replace Neotel with T-systems.

"Subsequent to that period of the 20th of November 2013, there seems to be a lot of inactivity and then around the 5th of December 2014 a further memorandum surfaced that approves the appointment of Neotel, this is something that is not ordinarily in the process of procurement in Transnet."

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Mahomedy said Neotel had initially been recommended through an open tender process, with all the necessary procurement processes adhered to.

Transnet chairperson Popo Molefe has told the commission that former CEOs Brian Molefe and Siyabonga Gama as well as former chief financial officer Anoj Singh played a prominent role in corruption at Transnet. 

EDITED BY: African News Agency
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