PRETORIA, Gauteng — Transnet has taken decisive steps to tackle irregularities and recover lost funds linked to corruption, prompting the Organisation Undoing Tax Abuse (OUTA) to welcome the crackdown and demand stricter enforcement of state tender systems. Transnet Port Terminals (TPT) has applied for the blacklisting of seven companies implicated in unethical conduct, a move that OUTA CEO Wayne Duvenage describes as a long-overdue but necessary action against malfeasance.
The port terminals division is actively working to recover stolen funds and investigate similar cases across its other operating divisions. The seven companies were implicated in forensic investigations conducted by the Special Investigating Unit (SIU), which uncovered bribery, kickbacks, theft, financial misconduct, collusion, and the submission of false information.
As a result, these entities will be barred from doing business with Transnet and other public entities for the next ten years. Additionally, TPT has launched disciplinary action against internal employees who colluded with the implicated companies.
Reacting to the developments, OUTA CEO Wayne Duvenage praised the move, specifically commending Jabu Daki, the Chief Executive of TPT, for taking the initiative. However, Duvenage emphasized that such actions must become the norm across all state-owned entities.
According to Duvenage, as of July 2, the National Treasury’s updated restricted supplier database listed only about 320 companies and individuals. He argued that many more entities need to be added to the list to effectively combat corruption.
“The restricted supplier database is a powerful tool to prevent corruption, but it only works if municipalities, state entities like Transnet, and government departments consistently upload instances of poor service delivery, corruption, and uncompleted projects,” Duvenage explained.
He stressed the critical importance of listing the directors of these companies. Without this measure, offending companies can simply change their names and continue securing government contracts.
Furthermore, Duvenage highlighted systemic flaws in the e-tender portal system. The portal is designed to connect the restricted supplier database with issued tenders, but many government departments fail to upload their tenders to the platform.
“If it is not implemented properly, it is a toothless and meaningless tool,” Duvenage stated, urging the National Treasury to work closely with various government departments to ensure consistent utilization. He noted that Treasury must take a hard look at its existing tools and hold accountable those entities that fail to upload critical information regarding malfaisance.
When asked about the potential for criminal litigation, Duvenage pointed out that the National Prosecuting Authority (NPA) must take the evidence gathered by the SIU and prepare criminal cases against the implicated individuals and companies. While the SIU is working diligently to reclaim lost funds for the government, Duvenage argued that a coordinated approach is essential.
“The SIU needs to work in tandem with the NPA and SARS, so SARS can follow up on individuals who have been enriched without paying taxes,” he said, adding that collaboration across the criminal justice system is vital for ensuring true accountability.
Despite the positive steps taken by Transnet, Duvenage does not view the blacklisting as entirely precedent-setting, noting that the precedent already exists with the hundreds of companies and individuals previously listed. Instead, he views it as a much-needed revival of an underutilized tool.
He expressed hope that the statement from a major state institution like Transnet will encourage other boards and senior executives—such as those at SANParks, where tender irregularities have also been reported—to realize their role in fighting corruption and start blacklisting corrupt service providers.
