Transnet Declares R8.4 Billion Loss

[John Ashworth]

Transnet Declares R8.4 Billion Loss As Government’s Red Tape And Lack Of Support Prevents It From Being Competitive

The United National Transport Union (UNTU) is shocked and deeply concerned about the loss of R8.4 billion declared by Transnet, to date one of the only financially sound and viable state-owned enterprises that has never needed to ask the Government for a bailout. Steve Harris, General Secretary of UNTU, says what makes matters worse is that most of the factors which worked against Transnet in the 2020/2021 financial year were beyond its control.

“Government is not doing enough to empower and allow a global market contender like Transnet to compete on equal footing with commercial companies as it is supposed. Transnet has got no competitive edge because of the straight and prolonged procurement processes set out by National Treasury and the regulations set out in the Public Service Finance Management Act (PFMA). “Although Transnet applied for exemption of some of these provisions to allow it to respond faster to the demands of the market, it is denied. The result is a cripple Transnet. A cripple Transnet is a cripple South African economy,” says Harris...