Transnet says its prop­erty port­fo­lio value is R4.1bn, not R40bn

The Star Early Edition - - NEWS - Them­be­lihle Mkhonza

STATE-owned freight and lo­gis­tics com­pany Transnet yes­ter­day moved to clar­ify a re­quest for a pro­posal it is­sued out for its prop­erty port­fo­lio.

The com­pany said the value of the port­fo­lio was R4.1 bil­lion and not R40bn as claimed by the DA.

The DA had ear­lier called on Transnet to shed light on the ten­der to man­age the port­fo­lio, charg­ing that it was con­cerned that, given its size, the ten­der would be very vul­ner­a­ble to cor­rup­tion.

“The value of Transnet’s prop­erty port­fo­lio is sub­stan­tial and the ten­der process must be thor­oughly in­ves­ti­gated to pro­tect the paras­tatal from be­ing looted. Bil­lions of rand which could have helped South Africa’s poor have been stolen through state cap­ture and the DA will not al­low anymore paras­tatals to be cap­tured,” the party said.

So­lu­tions

How­ever, Transnet said state­ments that there was a R40bn busi­ness op­por­tu­nity to be taken ad­van­tage of were in­cor­rect.

The util­ity said it pub­licly is­sued the RFP in April for the devel­op­ment and im­ple­men­ta­tion of holis­tic and sus­tain­able so­lu­tions for its non-core prop­erty port­fo­lio.

“The prop­erty port­fo­lio is not for sale. The op­ti­mi­sa­tion process re­lates to the in­ves­ti­ga­tion of ways to en­hance re­turns on its non-core prop­erty port­fo­lio,” spokesper­son Viwe Tlaleane said yes­ter­day.

The re­spon­dents were re­quired to pro­vide a com­pre­hen­sive busi­ness plan, in­clud­ing an in-depth fi­nan­cial model, which should demon­strate how the com­pany could achieve a su­pe­rior rev­enue-gen­er­at­ing prop­erty port­fo­lio. The RFP closed in June.

The com­pany said any dis­posal of prop­erty would be sub­jected to the board and min­is­ter for ap­proval.

“Transnet is cur­rently eval­u­at­ing sub­mis­sions in line with its pro­cure­ment pro­cesses. Transnet’s core port­fo­lio, which is val­ued at R25.9bn is for sup­port­ing the com­pany’s core op­er­a­tions and is not part of the ten­der,” said Tlaleane.

On Tues­day last week Transnet an­nounced that it planned to in­vest R229.2bn in the next seven years to di­ver­sify its rev­enue streams.

“As a state-owned com­pany, Transnet’s prop­erty port­fo­lio was sub­jected to govern­ment rules and reg­u­la­tions which dic­tate that a state-owned en­ter­prise or a wholly-owned sub­sidiary of a state-owned com­pany may not dis­pose of any prop­erty un­less it has first of­fered that prop­erty for sale to the state and other sta­te­owned com­pa­nies,” Tlaleane said.

PHOTO: DAVID RITCHIE

A por­tion of a prop­erty in Culem­borg in Cape Town, for­merly owned by Transnet. Transnet yes­ter­day moved to clar­ify a re­quest for a pro­posal it is­sued out for its prop­erty port­fo­lio. The com­pany said the value of the port­fo­lio was R4.1 bil­lion and not R40bn as claimed by the DA.

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