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Another senior Transnet official has been suspended for his alleged role in awarding contracts to companies that scored from the massive locomotive acquisition drive that saw the Gupta family earn more than R5 billion in kickbacks.
According to an internal email sent to Transnet staff, which City Press has seen, former group supply chain officer Edward Thomas has been placed on precautionary suspension “pending investigations into various serious allegations of misconduct involving a number of contracts”.
Thomas currently occupies the position of group general manager: finance.
The email, written by Transnet’s chief human resources officer Nonkuleleko Sishi, states that the state-owned company is conducting investigations into allegations of “impropriety concerning the role played by some advisors and consultants including Regiments Capital, Trillian Advisory Services, Trillian Capital Partners”, and accounting firm Nkonki Inc, “in which Thomas is alleged to have played a role”.
Transnet spokesperson Nompumelelo Kunene was not immediately available for comment.
Thomas, Sishi writes in the email, was told on Thursday last week of Transnet’s intention to suspend him and was asked to provide reasons why he should not be suspended. His representations were then considered and the company, Sishi stated, “is of the view that he did not provide sufficient reasons”.
Thomas has been suspended on full pay pending the outcome of the investigation.
City Press understands that Thomas was alleged to have been a co-signatory on several invoices that Trillian submitted, without having established whether the company had done the job for which they had billed.
Sources told City Press that Transnet is also suspending Thomas because the state-owned company received a qualified audit opinion from the Auditor-General for the 2017/18 financial year. This is because the auditors were not able to obtain proper audit evidence that supply chain controls and management were in place, and that Thomas allegedly did not properly comply with supply chain controls and did not do enough to prevent and report irregular expenditure.
Thomas may now not interfere with any witnesses or evidence, may not enter Transnet’s premises, or contact any employees except to prepare for his disciplinary hearing.
Thomas is the latest senior executive to be suspended by the Transnet board in the wake of investigations into contracts awarded during the controversial 1064 locomotives tender. Others include group treasurer Phetolo Ramosebudi, who resigned shortly after he was suspended, supply chain manager Lindiwe Mdletshe, and former Transnet Freight Rail chief procurement officer Thamsanqa Jiyane.
Earlier this month, Transnet board chairperson Popo Molefe fired group chief executive Siyabonga Gama for his role in the tender, and the ballooning of its total cost from R38.6 billion to R54.5 billion.
Gama is currently fighting his dismissal at the Johannesburg Labour Court.
