Top official at Transnet under investigation
The bad news keeps emanating from the headquarters of Transnet, South Africa’s under pressure state-run port operator.
An investigation is underway looking at corruption claims levelled at Pepi Silinga, the CEO of Transnet National Port Authority. Silinga has been accused of handing his former employer – COEGA Development Corporation – a lucrative contract to build fences around the ports of Durban, Richards Bay and Saldanha Bay. The costs for the fences leapt from an initial R80m ($4.23m) to R300m.
The dire situation at South Africa’s ports, which have some of the lowest productivity levels in the world, has seen the authorities seek external help.
Transnet is seeking terminal operators to come in for a period of three years to close what it describes as “port operational gaps” at its eight commercial seaports where terminal operator contracts have been suspended or terminated.
The ports include Durban, Cape Town, Richards Bay, Ngqura, Saldanha Bay, Port Elizabeth, East London and Mossel Bay.
Splash has reported repeatedly on the queues of ships that have built up at ports across South Africa, with the country’s terminals repeatedly polling among the lowest productivity-wise in surveys carried out by the World Bank.