State-owned Transnet and the Special Investigating Unit (SIU) have concluded a settlement agreement with heavy machinery company Liebherr to repay R54-million to Transnet, regarding the award of two tenders in 2013 and 2014 for the supply of cranes to Transnet.
The SIU found that the decision to award the tenders was irregular, following which Transnet, the SIU and Liebherr agreed that the decision to award the tenders should be reviewed and set aside.
Investigations also found that Liebherr paid R54-million ($3.2-million) to Accurate Investments – a sales agent it appointed at the time the two tenders were awarded by Transnet.
As the case currently stands, the SIU did not find evidence that the payments were corrupt or fraudulent; nevertheless, as part of the settlement, Liebherr agreed to repay the total sum paid to Accurate Investments to Transnet on a ‘without prejudice’ basis.
Liebherr supplied all the cranes under the contracts, which are in use and will continue to be used by Transnet Port Terminals.
The settlement agreement also provides for an audit of the supplier development obligations under the contracts.
Should the audit determine that Transnet suffered any losses, the settlement agreement provides a mechanism for the resolution of the matter.
It is envisaged that Transnet and the SIU, with the concurrence of Liebherr, will launch the review application this year in the High Court or the Special Tribunal.