Pensions of two former Transnet executives frozen amid PPE probe
The Special Tribunal on Wednesday granted the Special Investigating Unit (SIU) and Transnet an order to interdict the pensions of two former executives.
Transnet’s former executive manager for group business continuity and disaster management, Lerato Makenete, and former executive manager for safety, Landela Madubane, are linked to fruitless and wasteful expenditures of approximately R33.5 million.
According to the order, the two former executives will not be able to withdraw their pension benefits amounting to R8.9 million.
In 2018, President Cyril Ramaphosa gave the SIU the green light to investigate allegations of corruption, maladministration, malpractice and payments made by state institutions relating to personal protective equipment (PPE) procurement.
“The pension funds will remain interdicted pending finalisation of an application to be brought against former executives. 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,” said SIU's Kaizer Kganyago.
“During the emergency procurement process at the height of the Covid-19 pandemic in April 2020, 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.”
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