Transnet has suspended nine employees for alleged collusion with suppliers who overcharged the state-owned freight operator by between 50% and 1 000% across various items.
The parastatal announced on Wednesday that disciplinary proceedings have started against three of the suspended officials, with charges against others imminent. Transnet has also begun the process to blacklist the suppliers involved.
The allegations were uncovered during an internal investigation that included 34 audits across two Transnet operating divisions for transactions concluded in the 2024/25 financial year.
Transnet Group Chief Executive Michelle Phillips said the company maintains a zero-tolerance stance on impropriety. “Such conduct directly undermines our operational efficiency and financial performance. We remain resolute in our commitment to eradicating corruption across the organisation and will not allow the conduct of a few individuals to derail the pursuit of our strategic objectives,” she said.
The freight operator has approached law enforcement agencies for assistance and is finalising targeted actions and implementing systemic improvements to detect and prevent the recurrence of such practices.
Pattern of corruption
The latest suspensions add to a series of corruption cases that have plagued Transnet in recent years, stemming largely from the state capture era.
Former Transnet executives Brian Molefe, Anoj Singh, Siyabonga Gama, and Thamsanqa Jiyane are facing charges of fraud, corruption, and money laundering related to a R93 million locomotive deal. Their case, which was postponed to October 2025 for further investigations, is expected to go to trial in 2026 with at least 70 state witnesses.
Former minister Malusi Gigaba and other Transnet executives are also implicated in a corruption case stemming from a multibillion-rand locomotive procurement scandal. The case has been transferred to the Gauteng High Court.
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The National Prosecuting Authority maintains there is substantial evidence linking the former executives to corruption charges connected to the Gupta family.
In March 2024, Transnet National Ports Authority chief executive Pepi Silinga and two general managers were placed on precautionary suspension over allegations concerning the wrongful awarding of a R300 million tender.
Later that year, Marius Bennet, general manager for safety and security at Transnet Freight Rail, was suspended amid allegations of demanding R30 million in cash payments from security companies.
The procurement of 1 064 locomotives, valued at over R54 billion, has been at the centre of multiple corruption charges. Companies like Regiments Capital and Trillian Asset Management allegedly benefited from irregular appointments and inflated contracts, with payments totalling hundreds of millions of rands.
The state capture commission’s report detailed how governance structures at Transnet were manipulated to facilitate corrupt activities, including deviations from open bidding processes and the amendment of tender conditions.
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