TWO former Transnet executive managers have had their pension payouts frozen.
This is due to allegations of fruitless and wasteful spending of over R30 million during their time at the troubled state-owned entity.
The Special Investigating Unit (SIU) and Transnet approached the Special Tribunal to interdict their pension payouts, which amount to R8,9 million.
The tribunal ordered the interdict of the payout of Lerato Makenete, who was the executive manager responsible for the group business continuity and disaster management, and former executive manager for safety, Landela Madubane.
The two are prohibited from withdrawing their pension benefits from the Transnet Retirement Fund.
According to SIU spokesman Kaizer Kganyago, the pension funds will remain interdicted pending a finalisation of an application to be brought against former executives.
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Kganyago said Makenete and Madubane allegedly colluded with suppliers to defraud Transnet by inflating the price of the straws from 29 cents per straw to R29,99 per straw.
He said SIU and Transnet have instituted civil action in the Special Tribunal to review and set aside the contracts and recover financial losses suffered by Transnet due to overpayment of approximately R33,5 million.
Kganyago said the order of the Special Tribunal is part of the implementation of SIU investigation outcomes and consequence management to recover financial losses suffered by state institutions because of corruption or negligence.
