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Johannesburg - Transnet Freight Rail CEO Siyabonga Gama has lashed out against auditing group Ernst & Young (E&Y) for being a "conspirator" and "clandestine investigator" of allegations of irregularities levelled against him, reported Business Day.
Gama, who is said to be one of three short-listed candidates to take over as CEO of the parastatal, is facing disciplinary action for allegedly breaching procurement contracts - involving the awarding of a tender to buy 212 locomotives. E&Y is Transnet's appointed internal auditors.
In an open letter to E&Y which copied in Transnet executives, the acting board chairperson and Public Enterprises Minister Barbara Hogan, Gama's lawyer Themba Langa accused Transnet CEO Chris Wells as a "co-witch hunter", the financial daily reported.
Langa's letter said E&Y used its internal audit findings to investigate Gama, and said this showed they had "ulterior purposes".
Gama, the chief executive of Transnet Freight Rail, the parastatal's most profitable and largest division, is embroiled in a disciplinary hearing relating to the awarding of a tender to buy 212 locomotives
The tender, worth R6.5bn, was awarded to the Electro-Motive Sibanye consortium at the end of last year. The contract was cancelled after E&Y discovered irregularities.
According to Sake24, court documents relating to Electro-Motive Sibanye's appeal said "if the correct BEE score had been awarded to the company, it would never have been identified as the preferred bidder".
- Fin24.com