SIU To Investigate Maladministration At Transnet After Ramaphosa Signs Proclamations

The Special Investigating Unit (SIU) is now authorized to look into serious mismanagement at Transnet including the reinstatement of Siyabonga Gama, the former CEO of Transnet Freight Rail.

This announcement came after President Cyril Ramaphosa signed proclamations 181, 182, 183, and 184 of 2024, which allow the SIU to investigate claims of serious mismanagement at Transnet, the Gauteng Provincial Department of Human Settlement, the Umzumbe Local Municipality and the Masilonyana Local Municipality.

The SIU will also work on recovering any financial losses incurred by the State. According to Proclamation 184, the SIU to investigate serious mismanagement issues related to Siyabonga Gama's reinstatement as Chief Executive Officer of Transnet Freight Rail in February 2011, as well as the payment of his legal costs after being reinstated.

The investigation will also cover any unauthorized, irregular, or wasteful spending by Transnet related to these issues.

SIU spokesperson Kaizer Kganyago said the unit will "probe allegations of serious maladministration in the procurement of or contracting for goods, works, or services of leased accommodation by Transnet," SA News reported.

The spokesperson further said this investigation will specifically look into whether Transnet officials or agents acted corruptly or improperly to benefit themselves or others, which could have led to unauthorized, irregular, or wasteful spending, or financial losses for Transnet.

Kganyago said the SIU will also look into Transnet's contract for security services aimed at preventing cable theft and other crimes against Transnet Freight Rail. The contract was given to Abalozi Security Risk Advisory Services (Pty) Limited previously known as General Nyanda Security Advisory Services (Pty) Limited.

He added that the investigation will cover allegations of illegal or improper conduct from Jan. 1, 2007, to Sept. 13, 2024. It will also include any related activities before Jan. 1, 2007, and after the Proclamation date if they involve the same people, companies or contracts.

Furthermore, the "probe will examine the performance, poor performance, defective performance, or late performance by the service providers appointed by the municipality regarding the services delivered, performed, or rendered as part of the projects."

Whereas, Proclamation 182 instructs the SIU to investigate claims of mismanagement involving two tenders at the Masilonyana Local Municipality while Proclamation 181 directs to look into allegations of mismanagement concerning two tenders at the Gauteng Provincial Department of Human Settlement.

Earlier this month, the Department of Public Service and Administration (DPSA) said that 191 senior managers or Senior Management Services (SMS) members in various public departments were referred for investigations following lifestyle audits.