The Transnet Board of Directors says it is satisfied that the state-owned entity is now on the right footing regarding its financial affairs.
The freight utility was briefing the Select Committee on Public Enterprises of the National Council of Provinces (NCOP) in Parliament.
Transnet Board Chair Popo Molefe says funding from various financial institutions has helped the entity to gain some positive results in its finances over the past financial year.
“Our ability recently to unlock further funding by getting loans from the Dutch Bank and opening up for other new funders has enabled Transnet to continue its business, and to ensure that rating agencies do not give adverse ratings that downgraded us,” adds Molefe.
Earlier, Transnet released its financials for the year 2021/2022, reporting a R5 billion profit.
Transnet has also seen its first unqualified audit in four years.
CEO Portia Derby attributes profits to improvements in earnings and a decrease in asset impairments.
Its investment property has also had a fair value adjustment.
She does, however, stress that threats to security have compelled them to increase their expenditure.
This will increase from 4% to 5% of their budget, which is roughly about R4 billion.
Transnet seizes assets
Meanwhile, the company says it has managed to attach assets to the value of R26 million which belonged to its former employees implicated in wrongdoing.
The company says most of these workers have either since resigned or were dismissed.
The freight rail utility was briefing Parliament on progress made regarding internal investigations of misconduct by Transnet employees.
Transnet Chief Legal Officer Sandra Coetzee says all 17 investigations that were conducted together with the Special Investigating Unit (SIU) have since been completed.
“The assets available to be monetized is R26 million. The process of monetizing those assets relates to the disposal be that being in the form of an auction or some other form of a sale to recover the money itself. We have already recovered financial over 14 million of 26 million in asset value. This is an ongoing process in collaboration with the SIU.”
The video below is reporting on the court appearance of five former senior Transnet executives: