Public Enterprises Minister Lynne Brown on Tuesday instructed State-owned Transnet to report alleged irregularities, identified in an investigative report by law firm Werksmans Attorneys on the R54-billion procurement of 1 064 locomotives in 2014, to law enforcement authorities.
The parastatal last week said it would not, at this stage, be taking any disciplinary action against or suspend any officials implicated in the locomotives scandal owing to the inconclusive nature of a forensic report by Werksmans.
It stated that the report was incomplete and inconclusive based on the terms of reference provided to the law firm.
However, the law firm, which was appointed last year to investigate allegations of corruption in the procurement of diesel and electric locomotives from four original-equipment manufacturers, on Friday said it was surprised at the Transnet board's attempt to absolve anyone of wrongdoing when its report concluded that, not only should the company institute appropriate disciplinary action against those individuals identified in the report, but also that law enforcement agencies should be brought in to investigate the matters identified in the report.
While welcoming the board's decision to refer matters pertaining to the procurement process to the Judicial Commission of Inquiry into State capture, Brown said Transnet's board could not revoke its responsibility to restore public and investor confidence in the company.
"Eskom has been down this road of commissioning investigations only to claim they are indecisive or incomplete. It is an unsustainable strategy which adds to the weight of suspicion and negative sentiment about the company. Transnet must act on the Werksmans report," Brown said.
In January, the Minister told Parliament's Standing Committee on Public Accounts that if boards and executives of State-owned companies proved unable to do what was necessary to restore company credibility, then their rotation was inevitable.