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Mkwanazi: Irregular expenditure at Transnet was common during my tenure

The state capture commission is hearing how on one occasion a contract for R960 million ballooned to R1.8 billion and board approval for the escalation was applied for afterwards.

A screenshot of former Transnet board chair Mafika Mkwanazi at the state capture commission on Friday 16 October 2020. Picture: SABC Digital News/Youtube

JOHANNESBURG - Former Transnet board chair Mafika Mkwanazi said irregular expenditure and deviations were a regular occurrence during his tenure.

The state capture commission is hearing how on one occasion a contract for R960 million ballooned to R1.8 billion and board approval for the escalation was applied for afterwards.

At the time, Mkwanazi defended former CEO Siyabonga Gama who faced disciplinary action for failing to comply with procurement procedures.

ALSO READ: Mkwanazi defends why Gama was reappointed

When Gama challenged his disciplinary action, he said other employees had also not complied with procurement procedures, but none of them were charged.

Deputy Chief Justice Raymond Zondo said the Transnet board claimed that Gama was treated unfairly and used that as a door to reinstate him.

Mkwanazi defended Gama who faced disciplinary action, but Zondo wanted to know why he never asked if Gama applied for board approval to deviate from agreed expenditures.

He said irregular expenditure and deviations were a regular occurrence, but he agreed with Zondo that Gama ought to have known policies.

Mkhwanazi also said he never knew that junior officials who committed offences similar to Gama's were dismissed yet Gama was reinstated.

WATCH: State Capture Inquiry, 16 October 2020

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