The Special Investigating Unit (SIU) and Transnet have signed multiple settlement agreements totalling over R31.4 million following a Special Tribunal order that set aside several unlawful contracts. This was revealed in a joint statement released by the SIU and Transnet on Tuesday.

The statement said that these agreements, which involve repayments from companies and individuals who benefitted from irregular transactions, form part of ongoing efforts to recover financial losses suffered by the state and uphold accountability in public procurement.

The statement continued that the SIU and Transnet had approached the Special Tribunal following an investigation by the SIU. “This investigation revealed that two former Transnet executives allegedly received unlawful financial benefits totalling approximately R10 million from service providers Superfecta Trading 209 and BBDM Bros Advertising Agency. The executives are accused of using these unlawful financial benefits to acquire luxury properties.”

The statement added that on 12 February 2025, the Special Tribunal ruled that the decision of the former Group Executive: Transnet Property to award contracts to Superfecta Trading 209 (now Dynamic Power Engineering) for generator installation in 2016 and maintenance services in 2017 at the Carlton Centre precinct was unconstitutional, unlawful and invalid. Both contracts have been reviewed and set aside.

The statement said that the first settlement agreement was concluded between the SIU, Transnet, and Dynamic Power Engineering (formerly Superfecta Trading 209). “The deal follows the Special Tribunal’s ruling that the contract awarded to Dynamic Power in 2016 for installing two generators at the Carlton Centre precinct was unlawful. Additionally, a contract awarded to the company in 2017 for maintaining electrical and mechanical services at the same precinct was also found to be unlawful and set aside. Dynamic Power agreed to repay Transnet R21.4 million in net profits and legal costs as part of the settlement, with payments structured over three months.”

The statement added that a second settlement agreement was reached with former Transnet Group Executive: Transnet Property, Mr Zakhele Ezekiel ‘Thabo’ Lebelo, his wife Aletta Mokgoro Mabitsi, and the Thabo Lebelo Family Trust. “ Mr Lebelo was accused of unlawfully receiving bribes and secret profits totalling over R5.2 million while employed at Transnet. Under the settlement terms, the debt will be recovered by selling three preserved properties in Rosebank valued between R3.8 million and R4.2 million, as well as Mr Lebelo’s pension benefits held by the Transnet Retirement Fund. Should the proceeds be insufficient, Mr Lebelo and the Trust will remain liable for the outstanding balance. Furthermore, Mr Lebelo and the Trust will contribute R250,000 towards the SIU and Transnet’s legal fees.”

The statement said that the third settlement agreement pertains to the former Transnet Regional Manager: Coastal Region, Mr Phathutshedzo and his wife, Mrs Matlhodi Phillicia Mashamba. “The Special Tribunal ruled that they were indebted to Transnet. To settle the debt, the agreement provides for recovery through Mr Mashamba’s pension fund and the sale of a preserved property in Dainfern, which has been valued at approximately R6.5 million to R6.8 million. If these assets do not fully cover the debt, the Mashambas must make additional payments in equal instalments over twelve months.”

The statement added that furthermore, the Mashambas will contribute R250,000 towards the SIU and Transnet’s legal fees. “These settlement agreements continue the implementation of the SIU investigation outcomes and consequence management to recover assets and financial losses suffered by State institutions and/or prevent further losses. The agreements reinforce accountability and demonstrate the government’s commitment to enforcing transparency and ethical governance within state institutions.”

The statement said that the Special Investigating Units and Special Tribunals Act 74 of 1996 empowers the SIU to institute civil action in the Special Tribunal or the High Court to correct any wrongdoing it uncovers in its investigation. “Where evidence points to criminal conduct, the SIU refers the evidence to the National Prosecuting Authority for further action.”

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