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SIU and Transnet secure $1.67M in settlements after unlawful contract rulings

The Special Investigating Unit (SIU) and Transnet have signed settlement agreements worth over $1.67 million, following a Special Tribunal order that nullified several unlawful contracts.

"These agreements, which involve repayments from companies and individuals who benefitted from irregular transactions, form part of ongoing efforts to recover financial losses suffered by the state and uphold accountability in public procurement," the SIU and Transnet stated.

The SIU's investigation revealed that two former Transnet executives allegedly received unlawful financial benefits totaling approximately $530,000 from service providers Superfecta Trading 209 and BBDM Bros Advertising Agency. These benefits were reportedly used to acquire luxury properties.

On 12 February 2025, the Special Tribunal declared that the awarding of contracts to Superfecta Trading 209 (now Dynamic Power Engineering) for generator installation and maintenance services at the Carlton Centre precinct was unconstitutional and invalid. Both contracts were reviewed and set aside.

In the first settlement, Dynamic Power Engineering agreed to repay Transnet $1.14 million in net profits and legal costs over three months. A second agreement involved Zakhele Ezekiel 'Thabo' Lebelo, former Group Executive: Transnet Property, his wife Aletta Mokgoro Mabitsi, and the Thabo Lebelo Family Trust. The debt will be recovered through the sale of properties and pension benefits. A third agreement pertains to Phathutshedzo Mashamba, former Transnet Regional Manager: Coastal Region, and his wife, with debt recovery through property sales and pension funds.

These agreements align with the SIU's mandate under the Special Investigating Units and Special Tribunals Act 74 of 1996. Where evidence suggests criminal conduct, the SIU refers it to the National Prosecuting Authority.

Source: SA News

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