JOHANNESBURG — Transnet has suspended nine employees following an internal investigation that exposed massive overcharging and alleged collusion with suppliers. The state-owned logistics giant confirmed on Wednesday that it has already initiated disciplinary proceedings against three of the officials, with further charges expected shortly.
The crackdown follows a series of 34 internal audits conducted across two operating divisions. The investigation scrutinized transactions concluded during the 2024/25 financial year, revealing a pattern of gross financial misconduct. According to the audit findings, certain suppliers were overcharging the utility by margins ranging from 50% to as much as 1,000% on various items.
Transnet Group Chief Executive Michelle Phillips stated that the organization is taking a zero-tolerance approach to the findings. She noted that the conduct of the implicated individuals directly undermines the entity’s operational efficiency and financial recovery efforts. The parastatal has now moved to blacklist the suppliers involved in the scheme and has approached law enforcement agencies for criminal intervention.
The scale of the overcharging suggests a significant breakdown in internal procurement controls. By paying up to tenfold the market value for essential items, Transnet has faced unnecessary financial strain at a time when the Treasury is demanding stricter fiscal discipline from state-owned enterprises. The group is currently implementing systemic improvements designed to flag irregular pricing before payments are disbursed.
This purge is part of a broader strategy to restore the integrity of South Africa’s freight and rail networks, which have been crippled by years of mismanagement and corruption. The public interest remains high as the efficiency of Transnet is considered a primary lever for economic growth. Failure to address these internal leaks threatens the reliability of the national supply chain and the viability of the country’s export sectors.
Transnet confirmed that further investigations are currently underway to determine if the corruption extends to other divisions or previous financial years. The entity remains resolute in its commitment to eradicating malfeasance that derails its strategic objectives.
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