Transnet corruption clampdown: 45 employees dismissed

Following reports that Transnet had blacklisted seven companies, Jabu Mdaki, Chief Executive Officer of Transnet Port Terminals (TPT), shared how TPT was continuing to address corruption.

Mdaki revealed that as part of its corruption clampdown, TPT had dismissed 45 employees following internal investigations.

He added that more would follow.

Transnet Counts the Cost of Corruption Despite Corruption Clampdown

In an interview on HOT Business with Jeremy Braggs, Mdaki shared the strides TPT had made in tackling corruption.

When asked how the actions of the seven blacklisted companies had impacted Transnet, Mdaki described the damage as “huge” but unquantifiable.

He explained that Transnet was “dealing with a situation where you had a corrupt network within our organisation that was colluding with external companies to allocate work.”

“These were engineering companies that were supporting us on a technical basis,” the CEO revealed. Therefore, their conduct had impacted Transnet’s equipment reliability.

45 Employees Dismissed and More to Follow

Mdaki stressed TPT’s mismanagement was the result of a few bad apples and not a widespread issue.

Rather, the CEO praised the “large number of employees within Transnet Port Terminals that are committed and loyal to the organisation.”

He highlighted that “these were responsible for uncovering this level of corruption” through their persistent whistleblowing.

That whistleblowing and the subsequent theft, fraud, and corruption investigation led to the dismissal of 45 employees.

“We have dismissed 45 employees and managers across TPT,” he said.

Mdaki also revealed that during investigations, two employees had resigned. But that TPT was still “pursuing them in terms of going after the pension and other benefits.”

He added that this process was ongoing and that TPT still planned to go after more employees.

The Fight Against Corruption is Not Over

When asked if he believed the corruption was no longer undermining the port’s performance, Mdaki stated that he did not.

Instead, he highlighted that the organisation was evaluating and assessing “a new batch of companies.”

He praised this action for transforming the culture within TPT.

TPT’s corruption clampdown had resulted in employees feeling confident about “reporting and bringing forward [the] irregularities, corruption, corrupt activities, and theft” they had observed.

Transnet Praises Wins at South Africa’s Ports and Terminals

The CEO wasn’t shy about praising Transnet’s wins.

When asked about the concerns among exporters, Mdaki pointed to improvements at the Durban and Saldanha ports.

While discussing Durban, he suggested, “congestion of vessels and the vessel delays are things of the past.”

Where there were delays, he suggested they were due to weather.

But when the weather cleared, “productivity levels are such that we are able to catch up very quickly” and could ensure vessels depart on time or as soon as possible.

World Bank Rankings “Not a True Reflection”

Mdaki also addressed the World Bank Rankings of South Africa’s ports.

He underlined Cape Town in particular, which was ranked 400th on the global port rankings.

That ranking, he suggested, did “not reflect a true situation in Cape Town.”

Instead, he once again blamed the weather. This time, pointing to the wind in November, December, and January, “coupled with some of the operational challenges that we had”, for causing delays.

He expressed that if the World Bank had taken those into account, they wouldn’t have given Cape Town 400th place.

But concluded by sharing that the organisation had raised its concerns with the World Bank and its ranking methodology.