The South African Federation of Trade Unions (SAFTU) calls for a speedy trial and imprisonment of two former Transnet executives and their co-accused who are reportedly responsible for looting Transnetโs COVID-19 pandemic budget through tendering fraud. The tendering fraud cost Transnet over R33 million instead of R330 000 through inflated prices of breathalyser straws.
Covid-19 forced companies and institutions in the public and private sector to comply with certain regulations which included checking body temperature, wearing masks, etc. Because key companies like Transnet use breathalysers for alcohol testing, Covid-19 regulations compelled these companies to use disposable breathalyser straws. This created an opportunity for the Transnet executives to loot and plunder. They connived with service providers to defraud Transnet by inflating the price of disposable straws from their regular price of 29 cents each to R29.99, costing Transnet nearly R34 million (R33 834 698, 40).
The investigation has revealed that the accused failed to follow proper procurement procedures and neglected to disclose their associations with the procurement companies involved. As the looting bears witness, their failure to follow procurement procedure was not caused by incompetence, but by the plan to plunder Transnetโs scanty financial resources.
The accused used Covid-19 as an opportunity to fatten their pockets at the expense of the national interests. Transnet is the largest and most crucial part of the freight logistics chain in South Africa and has a workforce that exceeds 55,000 employees. Such fraudulent activities not only resulted in financial losses but also contributed to the stability and operational efficiency of the company. The consequences of these actions have been devastating, especially when we consider that Transnet is engulfed by a crisis that threatens the economic stability of our country.
Transnet is the single most crucial entity that is essential to the operation of a capitalist economy such as ours. That is because goods are produced precisely so that they can be circulated to realise their value, and by extension, recover the costs that have been invested and surplus congealed in them during production. So, any disturbance to logistics is a recipe for crises in the economy as multiple branches of production cannot circulate their goods, to both domestic and international markets.
SAFTU calls for the speedy conclusion of the trial and the eventual sentencing of the former executives and their acquaintances in the service-providing companies. Like in all cases of corruption, we are calling not only for fines but for long prison sentences.
