Following a forensic investigation into alleged irregularities regarding the award and implementation of a multi-million rand tender, transport utility Transnet has suspended two senior employees at Transnet Freight Rail (TFR), pending the finalization of a disciplinary process against the pair.

Transnet said in a statement that the two employees have been charged with serious misconduct, including willful or gross negligence and manipulation of tender processes, in relation to the irregular award of a contract for security services at TFR.

The governance breaches caused the company to incur irregular expenditure as contemplated in the Public Finance Management Act.

In line with the company's disciplinary procedures, the two employees were afforded a fair opportunity to make representations as to why they ought not to be suspended. This offer was not utilized. Subsequently, they were suspended, it said.

"The suspensions were deemed appropriate because of the seniority of the employees involved and the gravity of the allegations levelled by the company. The suspensions also became necessary to allow further investigations to be carried out without interference," the statement said.

The contract in question was awarded in a confined process meaning without an open tender process being conducted or other qualifying bidders being invited.

"The confinement for the security services in question did not follow the required governance processes. The confinement was approved by the suspended chief executive of TFR, who did not have the requisite delegated authority, and is undergoing a disciplinary process, amongst others, in connection with this confinement," t added.

The disciplinary processes for the two, which have already commenced, are being conducted in terms of internal company policy.

While the company's tender policies provide for confinement, the circumstances under which this practice is permitted are set out in Transnet's detailed procurement procedures. Where there is an absence or inadequate motivation, this needs to be questioned; and if this is accompanied by exceeding one's delegated authority, the responsible employees must be called to account.

"Transnet is committed to upholding the highest standards of corporate ethics and governance. Employees are expected to act in accordance with the company's values which, amongst others, demand that they act with integrity and in a manner that inspires trust and honesty. Apart from guidance by their consciences, all employees are bound by a compulsory code of ethics.

"It is important that all our suppliers and business associates are given a fair and equitable opportunity to do business with Transnet," it said.

The company is determined to act against corruption and governance breaches that bring its good name into disrepute regardless of the identity and seniority of the perpetrators,' it added.

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