Stop irregularities

HEADS must roll at Transnet after R8.1 billion irregular expenditure.

On Monday, The United National Transport Union (Untu) was shocked to learnt that R8.1 billion was irregularly spent by Transnet and demands that the individual or individuals who neglected to fulfil their duties be held accountable.

The reality of how bad cashstrapped Transnet had been financially managed was revealed when Mr Siyabonga Gama, chief executive of Transnet announced the company’s financial statements at Esselenpark in Tembisa.

Steve Harris, general secretary of Uuntu, said the irregular expenditure identified and reported by Transnet’s external auditors casts a shadow over the successes of the company, especially the new heights reached in the volumes of freight distributed by Transnet Freight Rail.

Gama said that the irregular expenditure did not necessarily mean that the money was not spent properly, but rather that the correct key supply chain control procedures were not followed.

According to a statement issued by Transnet, the board and its management team are developing a “corrective action plan” to prevent the recurrence of this and will focus on developing additional controls to prevent irregular expenditure.

Harris said Untu welcomed any steps taken to prevent irregular expenditure in the future.