Transnet on Wednesday dismissed two senior managers for manipulating a tender process for security services, a spokesman said.

A disciplinary hearing found the two guilty of dishonesty and misconduct that led to the awarding of a tender for security services at Transnet Freight Rail, spokesman John Dludlu said in a statement.

"The summary dismissal is in line with the recommendation of an independent and external chairman of the disciplinary hearing of the two."

Dludlu 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 - and without following required governance processes.

Suspensions in November

The two managers were suspended in November last year.

"Transnet is committed to upholding the highest standards of corporate ethics and governance. Non-compliance with these basic requirements will not be tolerated and employees will be called to account."

Dludlu confirmed to Sapa that the dismissals were related to a contract awarded to GNS Security Company.

The Mail & Guardian reported in January this year that the company was 50 percent owned by Communications Minister Siphiwe Nyanda.

And last month, the Congress of the People said it intended asking the Public Protector to investigate Nyanda's business interests.

Conflict of ethics code

The party alleged his business interests were in conflict with Section 96 of the Constitution and Section 2 of the Executive Members' Ethics Act.

This meant he could not undertake any other paid work, expose himself to a conflict of private and official interests, use his position to enrich himself, or act in a way that could compromise the credibility of government.

"Cope believes that General Nyanda is in breach of the act in respect of circumstances and elements surrounding contracts between his GNS Security Company and Transnet Freight Rail, and also other government departments," MP Juli Killian said.

She did not accept his explanation that he was no longer involved with the companies.

"The fact of the matter is that he remains a direct financial beneficiary of profits derived from the contracts between his personal interests and government departments and parastatals," she said.