SOE launches disciplinary action and supplier blacklisting after uncovering overcharging of up to 1000 percent
Transnet SOC Ltd has taken decisive action in its ongoing efforts to eliminate corruption and misconduct within the organisation, suspending nine employees implicated in alleged collusion with suppliers.
Disciplinary proceedings against three of the suspended employees have already commenced, while charges against other implicated officials are expected soon. In parallel, the process to blacklist suppliers involved in the alleged misconduct has begun.
The move marks a significant step in strengthening governance, reinforcing accountability and safeguarding Transnet’s operational and financial integrity.
Internal Audits Reveal Widespread Overcharging
The suspensions follow an internal investigation in which 34 audits were conducted across two Transnet operating divisions. The audits covered transactions concluded during the 2024 and 2025 financial year.
The findings revealed that certain suppliers had allegedly overcharged Transnet by between 50 percent and 1000 percent across a number of items. Further investigations are continuing to determine the full extent of the irregularities.
Michelle Phillips, Transnet Group Chief Executive, reaffirmed the organisation’s firm stance on corruption.
“Transnet maintains a zero-tolerance stance on any form of impropriety. This extends beyond instances of overcharging, as such conduct directly undermines our operational efficiency and financial performance. We remain resolute in our commitment to eradicating corruption across the organisation and will not allow the conduct of a few individuals to derail the pursuit of our strategic objectives,” she said.
Transnet has already approached law enforcement agencies for assistance as it moves forward with consequence management processes.
Beyond disciplinary action, the state-owned logistics company is finalising targeted corrective measures and implementing systemic improvements aimed at detecting and preventing similar practices in future.