Recent press reports quote a forensic report compiled by auditing firm Nkonki, which says irregular and wasteful expenditure resulted from the signing of an R8 billion contract – itself irregular – with the consortium Hatch and Mott MacDonald (HMG). After Transnet accepted a tender from the consortium, it (the consortium) drew up its own contract which “disadvantaged” Transnet, and allegedly began work before the Transnet Board gave the necessary authority. In terms of the contract, HMG staff members were paid retention, completion bonuses and interest on late payments, amounting to R184.4 million. There was no proof, Nkonki wrote, that the bonus payments were approved by the Transnet board: “The payment of retention bonuses in respect of staff of a service provider is not in line with best business practice or with the policies of Transnet.”
Original article [Railways Africa]
