Senior officials are suspended

STATE-RUN transport and logistics company Transnet said yesterday it had suspended senior officials after external auditors flagged “reportable irregularities” to their regulatory body. Transnet’s admission comes a day after power utility Eskom said its auditors had raised similar issues with the Independent Regulatory Boards of Auditors, highlighting growing governance concerns in South Africa’s state-run companies. “The reportable irregularities relate to non-compliance and non-adherence to stipulated internal procurement processes and requirements of law in procurement contracts entered into between Transnet and various service providers by a number of senior officials,” Transnet said. “The irregularities are no longer taking place. The affected senior officials have been suspended, legal action has been taken where appropriate, and disciplinary actions are underway,” it said, without providing additional details. – Reuters