| Wed 12 Jul 2017, 15:22 | | TRANSNET SOC LIMITED - Transnets statement on the reported irregularities |
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Transnet’s statement on the reported irregularities
TRANSNET SOC LTD
JSE Code: TNET
TRANSNET’S STATEMENT ON THE REPORTED IRREGULARITIES
12 July 2017
As part of the Transnet’s year-end audit, Transnet’s external auditors submitted a report of
reportable irregularities to the Independent Regulatory Boards of Auditors (IRBA), in line
with their professional obligations. 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.
In terms of the Audit Profession Act, the Board of Transnet had 30 days to make
representation to the external auditors of steps taken to mitigate the risks identified, after
which the external auditors were then required to report back to IRBA to confirm if:
* no reportable irregularities are taking place; or
* the suspected reportable irregularities are no longer taking place and that adequate
steps have been taken to the prevention or recovery of any loss as a result thereof, if
relevant, or
* the reportable irregularities are continuing.
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. Furthermore, Transnet is no longer using the affected suppliers and all
payments have been put on hold until finalisation of the legal investigation, where monies
will be recovered, including interest and legal costs.
There have not been any significant movements on the prices of our instruments and the
spread on the Transnet SOC Ltd. Bonds are stable.
__________________________
B E GOTHA
Manager: Treasury Compliance
Date: 12 July, 2017
Transnet SOC Ltd Carlton Centre P.O. Box 72501
Registration Number 150 Commissioner Parkview, Johannesburg
1990/000900/30 Street South Africa, 2122
Johannesburg T +27 11 308 3001
2001 F +27 11 308 2638
Directors: LC Mabaso (Chairperson) SI Gama* (Group Chief Executive) Y Forbes GJ Mahlalela PEB Mathekga ZA Nagdee VM Nkonyane BG Stagman www.transnet.net
GJ Pita* (Chief Financial Officer)
*Executive
Group Company Secretary: NE Khumalo
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