/ 21 February 1997

Portnet head in witch-hunt

The head of Durban’s port is accused of racist behaviour and using spy tactics against his fired deputy, reports Ann Eveleth

THE head of South Africa’s busiest port is bugging the offices of his subordinates, undermining black empowerment and operating behind the backs of senior port management, according to allegations by port employees and suppliers.

Employees at the Durban port say that manager Bax Nomvete is engaged in a witch- hunt against former associates of Sipho Nyawo, the deputy port manager who was fired last November.

Portnet, which operates the port, fired Nyawo because of alleged credit card irregularities, but his supporters say he was unfairly targeted by what they call the racist old guard at Transnet, the parastatal that owns Portnet. The allegations were rejected by Transnet chairman Louise Tager.

The disgruntled employees also say they have come under surveillance and investigation because of their support for Nyawo.

They said a new Transnet operation, the Business Information Services Department, is involved in the surveillance.

And according to documents in the Mail & Guardian’s possession, Portnet senior management have questioned Nomvete about the role of the new department, and his relationship to it.

In a January 29 memo, Portnet chief executive Ivor Funnel asked Nomvete to explain a visit to the port by department head Felix Ngwenya.

“Why were I and the office of the executive manager [security and risk management] not informed of the visit?” the memo said.

Nomvete replied to Funnel that it had been “to gain a better understanding of any security and risk-related problems that could compromise our ability to run an effective service”.

Nomvete was unable to define the actual role of the new department, though he confirmed that he had discussed “security related matters” with Ngwenya. He denied he had any employees placed under surveillance.

Funnell could not be reached this week and Ngwenya refused to comment.

In the meantime, Nomvete has also come under fire from Portnet suppliers whose contracts he cancelled last year. Joining together as the Black Economic Empowerment Committee, they say they have suffered “humiliation, financial loss and many other negative consequences” because of allegations at the time that the contracts were cancelled because of procurement irregularities.

Nomvete told the M&G he would reinstate the contracts “fairly soon”, but added this would happen “along terms and conditions more conducive to a fair and transparent business environment”.

Portnet insiders say that the allegations were false, and there had never been a problem with their service. They say Nomvete cancelled the contracts because they had been signed during Nyawo’s tenure.

Under pressure from Transnet managing director Saki Macozoma and the Department of Public Enterprises, Nomvete reportedly has promised to reinstate the contracts.

Nomvete said he cancelled the contracts because they did not comply with Transnet’s tender procedures. “While we support black empowerment, we are not a charity so our businesses must provide a quality service,” he said.

The decision also was linked to the suspension last year of six Portnet employees – most from the procurement section – pending investigation by Transnet’s audit department. Department head Nigel Payne this week denied the two actions were linked, but according to a fax from Payne to Nomvete dated November 5 Payne actually instructed Nomvete to cancel the contracts. He told him to give “30 days’ notice … in terms of the contracts entered into between Portnet and the approximately 20 companies affected in Durban” and “to put in place a system to evaluate the current `contractors’ during the notice period”.