SOUTH AFRICAN PARLIAMENTARY COMMITTEE RAISES CONCERN OVER TRANSNET CONTRACTS

CAPE TOWN, The Standing Committee on Public Accounts (Scopa) of the South African Parliament has raised concerns about expansion and deviation of some contracts entered into by Transnet, the South African railways, port and pipeline company which is majority owned by the government, because the contracts appear to be continuously extended.

Scopa is also concerned about the nature of the relationship between Transnet and the National Treasury in relation to the approval of the expansion and deviation of contracts.

It agreed with the National Treasury that it will be briefed on a quarterly basis on expansions and deviations of contracts to allow Scopa to monitor Transnet’s contracts closely.

Scopa has also informed Transnet that the company is liable for the costs which amounts to fruitless and wasteful expenditure incurred by members of the parliamentary committee when they travelled to Cape Town for a hearing scheduled for Dec 6, 2017, which Transnet officials failed to attend.

Scopa Chairperson Themba Godi said there are companies whose contracts with Transnet get renewed all the time like the case of Protea Coin, a subsidiary of services, trading, and distribution company Bidvest Group, whose contract was extended 13 times which was the longest contract the standing committee had ever seen.

Source: NAM NEWS NETWORK