Press Statement dated 20 August 2018
Today, The United National Transport Union (UNTU) is shocked to have learned that R8,1 billion was irregularly spent by Transnet and demands that the individual or individuals whom neglected to fulfil their duties, must be held accountable.
The reality of how bad the cash-strapped Transnet had been financially managed was revealed this morning when Mr Siyabonga Gama, Chief-Executive Officer of Transnet had announced the company’s financial statements at Esselenpark in Tembisa.
Steve Harris, General Secretary of UNTU, says the irregular expenditure identified and reported by Transnet’s external auditors cast a shadow over the successes of the company, especially the new heights reached in the volumes of freight distributed by Transnet Freight Rail.
“Gama said that the irregular expenditure does not necessary mean that the money was not spent properly, but rather that the correct key supply chain control procedures were not followed,” says Harris.
According to a statement issued by Transnet, The Board and its management team is developing a “corrective action plan” to prevent the recurrence of this and will focus on developing additional controls to prevent irregular expenditure.
“UNTU welcomes any steps taken to prevent irregular expenditure in the future,” says Harris.
Issued on behalf of United National Transport Union (UNTU) by Sonja Carstens, Media and Liaison Officer