Staff Reporter.
The pension pay-outs to two former Transnet executives linked to fruitless and wasteful expenditure of R33.5-million arising from the acquisition of a million disposable breathalyser straws, procured using Covid-19 emergency regulations, have been interdicted by the Special Tribunal.
The pension funds amount to R8.9-million and will remain interdicted pending a finalisation of an application to be brought against the former executives, namely Lerato Mary Theresa Makenete and Landela Hawkins Madubane.
The tribunal, which has a statutory mandate to recover public funds syphoned from the fiscus through corruption and fraud, made the order on October 23.
The application for the order was brought to the court by the Special Investigating Unit (SIU) and the state-owned freight rail and logistics company.
“Transnet initiated and called on the support of the SIU to investigate this matter and requested the support of the SIU to expand and complete the investigations.An investigation by the SIU into the affairs of Transnet has 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…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 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 said in a joint statement.
The two institutions have initiated proceedings against Makenete and Madubane in an attempt recover the financial losses suffered by Transnet due to the overpayment and brought an application to review and set aside the contracts.
“Following the conclusion of the investigation, the SIU made disciplinary referral to Transnet against Makenete and Madubane. Transnet actioned the referral, however, they both failed to appear for disciplinary hearings, but the proceeding continued in their absence. The duo was found guilty and dismissed.
“[The] SIU refers any evidence pointing to criminal conduct it uncovers to the National Prosecuting Authority (NPA) for further action, “the statement read.