Photo by: Duane Daws
State-owned parastatal Transnet has withdrawn all litigation against General Nyanda Security Services (GNS) after a vigorous and exhaustive investigation cleared the group and its founders of wrongdoing.
The disputes, which led to various legal proceedings by both parties, revolved around agreements that were entered into with GNS – and later disputed by Transnet – nearly five years ago.
Transnet has found no evidence of wrongdoing by GNS and its cofounder, former head of the South African National Defence Force and former Communications Minister General Siphiwe Nyanda.
“Transnet derived full benefit from the amounts incurred on all contracts with GNS [now known as Abalozi Risk Services],” Transnet said on Monday.
Nyanda’s business interest was called into question after GNS signed a contract with Transnet in 2009, while then Public Enterprises Minister Barbara Hogan questioned the increase in the tender amount from R19-million to R55-million.
At the time, Transnet noted a number of tender irregularities and had claimed wilful or gross negligence and manipulation of tender processes in the awarding of a contract for security services at the State-owned enterprise.
“Transnet regrets any harm that may have been caused by the handling of the matter and GNS has also agreed to withdraw all its counterclaims against Transnet,” the group said in a statement.
The blacklisting of GNS was lifted in 2013.
“It was procedurally and substantially unfair – it did not comply with the board-approved procedures and processes,” Transnet concluded.
The terms of the settlement remained confidential.