The Special Investigating Unit (SIU) and Transnet SOC Ltd have been granted an order by the Special Tribunal to halt the pension funds of two former Transnet executives, due to corruption and mismanagement of funds worth over R33.5 million.
Former executive manager for group business continuity and disaster management, Lerato Theresa Makenete, and former executive manager for safety, Landela Hawkins Madubane, have been interdicted from withdrawing their pension benefits from Transnet Retirement Fund.
Their pension funds amount to R8.9 million. Transnet had called on the SIU to investigate this matter thoroughly.
This comes after the duo was found guilty and dismissed for defrauding the entity's funds during the Covid-19 pandemic.
The SIU investigations revealed that Makenete and Madubane allegedly colluded with three service providers to abuse Transnet's emergency procurement process during Covid-19.
During the emergency procurement process at the height of the Covid-19 pandemic in April 2020, Transnet contracted Ramoyadi Air Conditioning, Ndzalo2 Trading, and Eagles Ropes to deliver over a million disposable breathalyser straws.
Makenete and Madubane allegedly colluded with suppliers during the Covid-19 pandemic 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 then instituted a civil action in the Special Tribunal to review and set aside the contracts and recover financial losses suffered by Transnet due to overpayment of approximately R33.5 million.
The two were dismissed after failing to appear for disciplinary hearings.
The SIU said the order from the Special Tribunal was part of its implementation of the 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," it said.
It said the pension funds will remain interdicted pending finalisation of an application to be brought against the former executives.
IOL Politics