/ 24 May 1999

Portnet cleared of fraud

OWN CORRESPONDENT, Johannesburg | Monday 12.15pm.

A REPORT on an audit of Portnet’s conculkting contracts has cleared the harbours parastatal of any crime, but found that Portnet management had “no clear guideline or policy to be followed in the appointment of consultants”.

Following the release of the audit report on Friday, Portnet MD Rob Childs criticised those who made “wild allegations” against the company’s management of fraud and corruption.

The audit team, led by Transnet’s internal audit chief Nigel Payne, reviewed certain consulting and property contracts entered into by Portnet. A separate report will be published on the property contracts later.

The probe followed reports that tender procedures were ignored in awarding by Childs of contracts worth more than R6,5-million, and a 50-year lease sold to Tsogo Sun Ebhayi to construct a casino at Port Elizabeth harbour.