SIU and Transnet Recover Over R31 Million Through Settlements After Special Tribunal Rulings

The Special Investigating Unit (SIU) and Transnet, South Africa's state-owned freight and logistics company, have successfully concluded significant financial recovery efforts following Special Tribunal orders. These efforts recovered at least R31.4 million through multiple settlement agreements against various entities and individuals implicated in unlawful activities.

This outcome follows comprehensive investigations by the SIU, which pinpointed irregular and unlawful transactions involving former executives at Transnet and external service providers. Among the companies involved was Dynamic Power Engineering, initially contracted as Superfecta Trading 209 for generator installations and maintenance services at Johannesburg’s Carlton Centre precinct. The Tribunal declared these contracts unconstitutional, leading to Dynamic Power reimbursing Transnet R21.4 million in wrongful profits and associated costs.

Moreover, high-level former Transnet executives, namely Mr. Zakhele Ezekiel ‘Thabo’ Lebelo, and the former Regional Manager: Coastal Region, Mr. Phathutshedzo, were also implicated. Mr. Lebelo, alongside his wife and family trust, personally professed to owing about R5.2 million in unlawful benefits.

In addition to these developments, both Mr. Lebelo and Mr. Mashamba will address their debts through asset liquidations and pension fund reimbursements. Any shortfall from these measures will see additional payments arranged to cover the full amounts due.

These settlement agreements embody a stern commitment by the SIU and Transnet to uphold integrity and accountability within public entities. They also highlight the effectiveness of South Africa's legislative framework in tackling corruption, with the Special Tribunals playing a critical role in ensuring justice and preventing further financial hemorrhages in state institutions.

Continued vigilance and stringent oversight are required to sustain these gains and promote transparent governance across all sectors.