Transnet Board Directed to Produce Turnaround Plan within Three Weeks: Pravin Gordhan

Following incurring a staggering loss of R5.7bn due to operational inefficiencies, the board of Transnet, South Africa's government-controlled logistics enterprise, has been granted a three-week deadline from Friday by Public Enterprises Minister, Pravin Gordhan, to develop a comprehensive turnaround plan.

The state-owned company, grappling with systemic inefficiencies that have resulted in significant financial struggles, is now required to demonstrate an actionable strategy designed to stabilise and rejuvenate its operations to function more effectively.

Gordhan’s demand for the plan outlines three pivotal components. First, it should consist of a thorough report indicating the board's intent to structurally overhaul the entity to facilitate enhanced delivery on its official mandate.

Second, the Minister insisted that the board devises an operation to counteract and eliminate unnecessary and excessive spending to increase financial viability.

Last, the plan should provide an explicit strategy on how the board intends to reduce and eradicate instances of corrupt practices within the entity - a seemingly prevalent concern which has detrimentally impacted its financial and operational performance.

The pressure mounted on Transnet's board is reflective of an urgent need for change within the ranks of the state-run corporation as it strives to combat instability and restore its financial footing.