Rob Rose
8 April 2005
Johannesburg — TRANSNET CEO Maria Ramos has introduced tough new measures to crack down on corruption and fraud in her company's tendering processes as she seeks to turn around the giant parastatal.
Speaking at the Chamber of Commerce and Industry SA annual conference yesterday, she gave the strongest indication yet that her company is putting in measures to thwart corruption.
Ramos, who referred to Transnet's reputation as a company where "corruption is still an issue", said she had changed the rules to prevent Transnet employees from bidding for company contracts.
Letters were sent out to Transnet employees telling them of this change, which Ramos said had not been a popular move.
The state-owned company has been one of the worst-performing government assets, but Ramos is spearheading a bid to narrow the focus to rail, ports and pipe activities, get rid of its other noncore assets, and push the flailing giant firmly back into the black.
Eyebrows were raised some time ago after former Spoornet employees successfully landed Transnet tenders - sparking concerns over the conflict of interest involved. Transnet has also introduced a whistleblowing system.
Although she did not name any specific instances, Ramos said she "was aware of a lot of it, and that Transnet had a bad reputation". She pledged "zero tolerance".
"We need a value system where corruption and fraud are taboo. And if people do come across instances of corruption, I'd like to know about it," she said.
Ramos said the improvements would help restore the reputation of the parastatal badly tarnished by decades of inefficiency, and hostility from private-sector companies that blame Spoornet's inefficient rail service for losses of potential profit.
She also slammed "empowerment fronting" in contracts awarded to outside companies, saying that tenders were often awarded based on seemingly impeccable empowerment credentials.
"But when you inspect the site, you don't find a single black person ... too much fronting is happening."
Part of the overhaul is a plan to inject R40bn in capital over the next five years to replace aged infrastructure at the core limbs that will remain once Transnet has sold off noncore assets.
Ramos also plans to revamp Transnet's "human capital".
The CEO warned she would not put up with the current levels of staff and this " haven for consultants".
"If - in addition to 80000 people already employed - I need 10000 consultants, then I don't need 80000 people."
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