Transnet Fires Two Executives Over Inflated Straw Prices
Transnet, a South African state-owned freight transport and logistics company, has fired two executives over a R33.8 million contract for thousands of disposable straws. The executives inflated prices from 28 cents to R29 per unit, reports News24. The scandal was uncovered by the Special Investigation Unit (SIU), which found that the executives had awarded contracts to three companies - Ramoyadi Air Conditioning, Ndzalo2 Trading, and Eagles Ropes - to deliver hundreds of thousands of disposable straws. The SIU discovered irregularities and a lack of transparency in the procurement process. The implicated executives, Lerato Mekenete and Landela Madubane, were dismissed, and their pensions were frozen following an internal disciplinary process. The SIU's investigators also found that the contracts were not awarded through a fair, transparent, and open public tender process.
Power Utility Eskom CEO Search Continues
The search for a new CEO for Eskom, South Africa's power utility, continues following the departure of former CEO Andre de Ruyter earlier this year, reports IOL. The question on how far along was the process of appointing a new CEO was discussed during a media briefing by Electricity Minister Dr Kgosientsho Ramokgopa on Sunday October 1. 2023. Ramokgopa said that Minister of Public Enterprises, Pravin Gordhan, would be able to provide more detail on the CEO appointment. A government communications officer told journalists that only one out of 147 candidates in the global search was recommended, but was later rejected by government. The board is now working on finding new candidates.
Discovery Health Medical Scheme Cuts Medical Savings Accounts on Popular Plans
Discovery Health Medical Scheme (DHMS) is reducing medical savings account (MSA) allocations for its most popular plans, Classic Saver and Essential Saver, by five percentage points in 2024 to keep contribution increases under 4%, reports Moneyweb. This will result in significant reductions in MSA balances for members, with some seeing cuts of up to 33%. For example, a main member on the Classic Saver plan will see their MSA drop from R12,180 to R10,020 next year. DHMS defends these changes by saying they allow for new benefits, such as virtual urgent healthcare and online cognitive behavioral therapy while preventing contribution increases of 8% to 11%. However, some members may face significant cost increases due to these shifts, and they will need to carefully assess their options, Moneyweb says.
