Workers of Transnet heard today that this state-owned enterprise irregularly spent R50 billion on amongst others three locomotive contracts during the eight years of state capture.
Transnet received a qualified audit in terms of the Public Finance Management Act due to the irregular expenditure.
The company’s revenue is R9 billion below its budget, Mohammed Mohamedy, Transnet Acting Chief Executive Officer informed employees today during the broadcast of the financial statements for the previous financial year. The revenue increased with 1,6%.
Only Transnet Pipelines showed a 9% increase in growth. “It is crucial to get our efficiencies up.” Transnet Pipelines has recently lost millions to theft of fuel in seven incidents that has been reported. In the same period the fuel price increased with 16%.
Cable theft is 55% higher than the previous financial year and 35% more trains of Transnet Freight Rail had to be cancelled as a result thereof.
“Freight Rail moved 11 million tons less than budgeted for.
“Overall Transnet only managed to reach 53% of the targets that we agreed upon with our shareholders. It means that 1 out of 2 targets was not met. Our revenue decreased with 11.3% and the EBITDA is 7.2% below budget.
This means that the return on the money invested in this business is only 5,8%. Transnet has loans to the effect of R127, 6 billion. We don’t ever want to knock on the door of the National Treasury and want to remain a self-sustainable company.
“The value of Transnet’s assets destroyed due to derailments or the company not collecting its debt is R2,7 billion. The company had to write-off R500 million to debtors who has not paid us.”
According to Mohamedy Transnet did not comply with the rules to qualify for incentive bonusses.
“We may have shown a slight growth, but we are significantly behind our budget.”
Steve Harris, General Secretary of UNTU, wanted to know what happened to the R222 million that Transnet borrowed to SA Express in December 2017.
Mohamedy said Transnet re-entered into a new agreement with SA Express about the money a few months ago but did not give details as to when the money will be repaid.
The presentation started with a moment of silence for the four Transnet employees who lost their lives in the line of duty the previous financial year.
Issued on behalf of UNTU by Sonja Carstens, Deputy-General Secretary responsible for Media, Liaison and Communication. For UNTU Press Releases phone Sonja at 082 463 6806.