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Nyanda tender: Transnet axes two

Johannesburg - Freight and logistics group Transnet has dismissed two senior managers for irregularly awarding a tender to a company allegedly linked to Minister of Communications Siphiwe Nyanda.

Transnet suspended the two senior managers in charge of the security department of Transnet Freight Rail (TFR) in November 2009. "The contract in question was awarded in a confined process - meaning without an open tender process being conducted or other qualifying bidders being invited - and without following the required governance processes," a Transnet statement issued on Wednesday read.

Transnet spokesperson John Dludlu told Fin24.com the contract was the same Minister of Public Enterprises Barbara Hogan referred to when she disclosed to MP's in December that a security company linked to Communications Minister Siphiwe Nyanda - GNS Security - was paid R55m by Transnet for security services.

TFR's CEO Siyabonga Gama was also suspended for this and other similar incidents. At the time, Hogan declined to divulge the details of the alleged irregularities on Gama's part since they were subject to an ongoing disciplinary hearing. However, she did confirm Gama stands accused of exceeding his authority, as he was only entitled to approve contracts of R10m or less.

"The summary dismissal [of the two senior managers] is in line with the recommendation of an independent and external chairperson of the disciplinary hearing of the two," Transnet said. "The two were found guilty of dishonesty and misconduct in all the charges they faced in relation to their duties as TFR employees."

Gama, who was previously being mentioned as a candidate to fill the group CEO post vacated by Maria Ramos a year ago, has since mounted a big political fight and engaged the public support of Nyanda among other cabinet ministers.

However, according to a leaked forensic audit conducted by Deloitte on Transnet's behalf, the value of all the tenders whose alleged irregularity Gama was suspended for is estimated at around R800m.

- Fin24.com

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