Transnet launches disciplinary charges against TNPA CEO

Transnet SOC Ltd. has formally issued disciplinary charges against Pepi Silinga, the Chief Executive Officer (CEO) of Transnet National Ports Authority (TNPA), along with several managers implicated in alleged ‘acts of impropriety’.

Silinga joined TNPA in October 2020, after being with the Coega Development Corporation (CDC) for 22 years.

The decision stems from investigations conducted by Bowmans attorneys and recommendations from a forensic report by Fundudzi Investigators regarding a tender at the Port of Ngqura.

“After completing their investigations, Bowmans recommended disciplinary measures,” Transnet said.

“On 21 June 2024 and based on legal advice and the recommendations from the investigations, Transnet’s Board of Directors and the TNPA Board agreed to issue disciplinary charges against TNPA Chief Executive Mr Pepi Silinga. On the same day, Transnet also instituted disciplinary charges against managers implicated in the Fundudzi report and other managers at TNPA implicated in acts of impropriety. External independent chairpersons have been appointed to chair all disciplinary proceedings.”

TNPA suspended its CEO, Pepi Silinga, and two general managers in March this year amid allegations of improperly awarding a R300-million tender, with the precautionary suspension remaining in effect pending investigations. Silinga has been specifically implicated in purported tender irregularities related to a port-fencing upgrade project at Durban, Richards Bay, and Saldanha Bay, which allegedly escalated from an initial estimate of R80 million to R300 million.

South African Transport & Allied Workers’ Union (SATAWU) welcomed the charges against Silinga and other executives.

“Earlier this year (January), SATAWU revealed that Silinga had unlawfully awarded over R300 million tender to his close friends from R80 million. He also appointed his family and friends in his office into higher positions with no relevant qualifications nor experience, which is nepotism, and we will never allow such to happen under our watch,” the union said.

SATAWU further added that it was fighting against privatization at Transnet “because the entity claims to be bankrupt and struggling to maintain business, allegedly led by corrupt individuals like Pepi.”

TNPA has been faced with numerous challenges over the recent period, including a very poor ranking in the World Bank’s 2023 Container Port Performance Index (CPPI), which revealed that four of South Africa’s ports continued to rank among the worst-performing in the world.

Transnet claims that the World Bank ‘incorrectly’ used the duration of a vessel’s stay as a measure of container port cargo handling performance, relied on third-party sample data, and failed to give measured terminals access to the data sample for verification before publication.

Last week, Transnet was handed over a judgement by the High Court which ruled in favour of Total and Sasol regarding payments for crude oil conveyance, challenging the neutrality principle in tariff calculations for Transnet’s pipeline to the Natref refinery.

“The judgment thus has enormous implications not only for the public purse but also for Transnet’s ability to discharge its obligations under the applicable legislation and its licence conditions. Transnet intends to appeal the judgment and is in the process of instructing its legal team accordingly,” the company said.

Furthermore, earlier this year APM Terminals filed a case at the Durban High Court, challenging Transnet’s decision to select Manila-based International Container Terminal Services (ICTSI) to operate and upgrade the DCT Pier 2 in Durban. Bloomberg reported that APM Terminals’ court filings allege that ICTSI ought to have been disqualified for failing the solvency requirement.