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