Minister Brown warns SOE boards to restore credibility or face rotation

Brown has instructed Transnet to act on the findings of a report showing irregularities in the multi-billion-rand procurement of locomotives.

FILE: Public Enterprises Minister Lynne Brown. Picture: Thomas Holder/EWN

JOHANNESBURG – Public Enterprises Minister Lynne Brown has warned that if state-owned entities cannot do what is necessary to restore credibility, then their boards will be rotated.

Brown has instructed Transnet to act on the findings of a report showing irregularities in the multi-billion-rand procurement of locomotives.

An investigation conducted by Werkman's Attorneys into the R54 billion procurement process of 1064 locomotives in 2014 uncovered alleged irregularities.

However, Transnet decided that the investigation was indecisive and incomplete.

Transnet has referred the multibillion rand procurement of locomotives to the judicial commission of inquiry into state capture.

Brown says that she welcomes this but has urged Transnet’s board to act decisively on the findings of the report that have flagged allegations of wrongdoing.

It's understood that the firm that conducted the investigation questioned Transnet’s attempt to absolve anyone of wrongdoing.

Brown says that overseeing investigations and disciplinary processes against staff are the responsibilities of the board.

She has used Eskom as an example of the kind of reputation Transnet can get for not acting on this report, saying that Eskom also commissioned investigations only to claim that they are indecisive or incomplete.

(Edited by Leeto M Khoza)