Parliament, Thursday, 15 March 2018 – The Portfolio Committee on Public Enterprises received a briefing from Transnet on its annual report and financial statements for the 2016/2017 financial year. The committee welcomed the presentation, while some members of the committee raised concerns about it.
On the issue of railway lines, the committee said this is something that Transnet must look into to stimulate rural economies. The state of national roads and the high rate of road deaths concerns the committee. Hence Transnet must focus on moving freight from road to rail. This will have the added benefit of creating job opportunities for young people. The committee also emphasised that expansion of rail infrastructure is a key to industrialisation.
The committee expressed concern on Transnet’s failure to achieve key performance indicators (KPI) in the last four years, as recorded in the audit report. Transnet failed in 2016/17 to meet approximately 48% of the performance targets it had set itself. In its report, the Auditor-General (AG) raised concerns with the increase in irregular and fruitless expenditure at Transnet. The committee asked Transnet to provide a report on how it is addressing these concerns.
Answering questions about contracts with McKinsey, Trillian and Regiments, Transnet Group Chief Executive, Mr Siyabonga Gama, said these were cancelled in October 2016 when suspicions about wrong-doing were raised.
Members of the committee told Transnet to strengthen its broad-based black economic empowerment by ensuring that people from previously disadvantaged background are empowered. They also warned Transnet to be more vigilant about fronting. The committee commended the representation of women at an executive level at Transnet. Representation of people with disabilities remains a challenge, however, representation remained at 2.3% of the total headcount.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON PUBLIC ENTERPRISES, MS LUNGI MNGANGA-GCABASHE
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