Rafiq Wagiet22 April 2024 | 17:17

Court overturns Transnet's tender to fraud-accused company, awards it to another

The tender awarded to Aqua Transport for critical port equipment has been revoked by the Pretoria High Court.

Court overturns Transnet's tender to fraud-accused company, awards it to another

Picture: Rejoice Ndlovu/Eyewitness News

Bruce Whitfield speaks to Carol Paton, editor-at-large at Fin24.

The High Court in Pretoria overruled the awarding of a tender for the supply of critical port equipment to a fraud-accused company.

In 2022, Transnet awarded Aqua Transport the contract for work at the Richards Bay port, despite the company being accused of defrauding the KwaZulu-Natal provincial government of R1.6 million.

"The company that...Transnet awarded the tender to is on trial for fraud, for another tender rigging case in KwaZulu-Natal."

- Carol Paton, editor-at-large - Fin24

Portia Derby was the CEO at Transnet at the time. Her three-year stint ended in September 2023.

In February this year, Michelle Phillips was appointed as its new head, after serving in an acting capacity following Derby's resignation.

Carol Paton, editor-at-large at Fin24 says there are major red flags regarding Transnet's procurement processes. 

"There's definitely an alarm bell, to continue to defend your appointment of a whose directors are actually undergoing a fraud trial, for ripping off the public sector in KwaZulu-Natal."

- Carol Paton, editor-at-large - Fin24

"...there is actually a big problem at Transnet with their procurement, and I think they seem to be not doing anything about it."

- Carol Paton, editor-at-large - Fin24

Scroll to the top to listen to the interview.