Transnet's state capture past must be separated from current regime - Gordhan
While the minister said that the state entity was starting to reposition itself, it still had a dark cloud hanging over it as it dealt with the consequences of dodgy tenders in the past.
CAPE TOWN - Public Enterprises Minister Pravin Gordhan said that Transnet was at the centre of state capture.
While the minister said that the state entity was starting to reposition itself, it still had a dark cloud hanging over it as it dealt with the consequences of dodgy tenders in the past.
Gordhan and Transnet Group CEO Portia Derby on Tuesday briefed Parliament’s finance watchdog, Scopa, about the entity’s performance and various investigations.
Minister Gordhan said that all the rot that happened at Transnet previously should be ring-fenced and separated from the current regime and its operations.
One of the state capture-related investigations at Transnet related to the procurement of 1,064 locomotives at a cost of over R50 billion.
"In some ways, that past of capture and its consequences needs to be ring-fenced and clearly within that framework identify the nature of the problem - the contracts entered into, the malfeasance which resulted in court action which you'll hear about shortly, to recover funds etc."
The committee has also heard how Transnet had improved its performance with revenues of over R75 billion in the year under review.
Committee member Alf Lees said that the entity seemed to have turned itself around.
"I must say that by large, I get a much warmer feeling about this team than I do with many otehr state-owned enterprises that appear before us."
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