Transnet and the Special Investigating Unit (SIU) have secured a court order interdicting retirement fund payouts to two former executives accused of inflating the price of breathalyser straws by 10 241%.
In terms of the Special Tribunal order of 23 October, the Transnet Retirement Fund is interdicted from paying out the former Transnet employees their retirement benefits of R8.9 million. The interdict will remain in place pending the finalisation of an application to be brought against the former executives, the SIU and Transnet said in a joint statement yesterday.
The Special Tribunal, which has a similar status to the High Court, was established in terms of Special Investigating Units and Special Tribunals Act. Its statutory mandate is to recover public funds syphoned from the fiscus through corruption, fraud, and illicit money flows.
The accused are Lerato Mary Theresa Makenete, the former executive manager responsible for group business continuity and disaster management, and Landela Hawkins Madubane, the former executive manager for safety.
An investigation by the SIU found that Makenete and Madubane allegedly colluded with three service providers to abuse Transnet’s emergency procurement process during the Covid-19 pandemic. In April 2020, Transnet contracted with Ramoyadi Air Conditioning, Ndzalo2 Trading, and Eagles Ropes to deliver more than a million disposable breathalyser straws.
Makenete and Madubane allegedly colluded with the suppliers to defraud Transnet by inflating the price of the straws from 29 cents a straw to R29.99 a straw, resulting in a payment of more than R33.8 million instead of in the region of R300 000.
The SIU and Transnet have instituted civil action in the Special Tribunal to review and set aside the contracts and recover the financial losses suffered by Transnet because of overpayment of about R33.5m.
Transnet dismissed Makenete and Madubane following disciplinary hearings, which they failed to attend.
The SIU was, in terms of Proclamation R23 of 2020, directed by President Cyril Ramaphosa to investigate allegations of corruption, maladministration, malpractice, and payments made by state institutions relating to the procurement of personal protective equipment.
The SIU is empowered to institute civil action in the High Court or a Special Tribunal to correct any wrongdoing uncovered during investigations, caused by corruption, fraud, or maladministration. In line with the Special Investigating Units and Special Tribunals Act, the SIU refers any evidence pointing to criminal conduct it uncovers to the National Prosecuting Authority for further action.
