Pension pay-outs to two former Transnet executives linked to fruitless and wasteful expenditure of R33.5-million arising from the acquisition of a million disposable breathalyser straws, procured using Covid emergency regulations, have been interdicted by the Special Tribunal.
The pension funds amount to R8.9-million and will remain interdicted pending a finalisation of an application to be brought against the former executives, namely Lerato Mary Theresa Makenete and Landela Hawkins Madubane.
The tribunal, which has a statutory mandate to recover public funds syphoned from the fiscus through corruption and fraud, made the order on October 23.
The interdict follows an investigation by the Special Investigating Unit (SIU), which has been empowered by a Presidential proclamation to investigate allegations of corruption, maladministration, malpractice and payments made by State institutions relating to personal protective equipment.
In this matter, the SIU probed alleged collusion between Makenete and Madubane and three service providers - Ramoyadi Air Conditioning, Ndzalo2 Trading, and Eagles Ropes – to abuse Transnet's emergency procurement process in April 2020.
The two Transnet executives allegedly colluded with suppliers to inflate the price of the straws from R0.29 a straw to R29.99 a straw.
The SIU and Transnet have instituted civil action in the Special Tribunal to review and set aside the contracts and recover financial losses suffered by Transnet owing to overpayment of about R33.5-million.
Following the investigation, the SIU also made a disciplinary referral to Transnet against Makenete and Madubane, who were found guilty and dismissed after failing to appear at the hearings.