The investigation into Spoornet CEO Zandile Jakavula, suspended this week pending the probe, has been extended to look also at other possible beneficiaries of discounted houses.
Transnet’s board on Monday said in addition to the allegations published in the Mail & Guardian early this month, the investigators will also look at ”a range of other issues”.
”These will include the role of Spoornet officials in the Jakavula transaction or any other similar transaction and the possible sale of other Spoornet housing assets to Spoornet officials,” the board said.
The M&G two weeks ago exposed how Jakavula bought the exclusive property from the rail parastal he heads at a fraction of its value – and then had Spoornet officials renovate it, initially using public money.
Jakavula bought the house for R83 000 last June and Spoornet Property Services – at his request – renovated the house for R363 000. He repaid the renovation costs in April.
This week the M&G learned that Transnet sold two other railway houses located next to Jakavula’s riverfront house in 1996 and 1998 for about R130 000 each – almost twice what Jakavula paid last year.
The two houses are also located on Van der Riet Street, on the banks of the scenic Kowie River. They were sold to private buyers and the amounts paid appear to have been market related.
On Monday the Transnet board, Spoornet’s parent company, suspended Jakavula with full pay pending the outcome of the investigation.
The board said the suspension followed a preliminary investigation by Gobodo, a forensic and investigative accounting firm.
A charge sheet will be presented to Jakavula once the detailed investigation has been completed, the board said.
Spoornet’s general manager, Tshidi Nyama, who joined the parastatal in 1997, has been appointed acting CEO.
Transnet has appointed an independent individual to preside over the investigation. ”A steadfast commitment to sound corporate governance is the foundation stone with which Transnet is being transformed into a company of which all South Africans can be proud,” Transnet board chairperson Dr Bongani Khumalo said.
This week media reports suggested that Khumalo and some members of the board will appear before Parliament’s portfolio committee on public enterprise to answer questions relating to the Jakavula case.
Transnet investigators this week continued to gather information from a number of sources. It is not clear when the investigation will be completed.
Trade union Salstaff, which has about 18 000 members within Transnet, confirmed its members have been interviewed by the investigators.
Salstaff spokesperson Braam Viljoen said his members had in the past – as early as February – complained about Jakavula’s house.
”Our members complained to us that Mr Jakavula was buying a property from Spoornet and was now renovating it using Spoornet funds,” he said.
After the complaint, Viljoen said, ”Mr Jakavula started repaying the amount used by Spoornet to renovate his house.” Viljoen claims that before Jakavula bought the property, Spoornet’s junior officials used it as a holiday home.
He said the officials paid R180 a day to use it. This was stopped in June last year, the month Jakavula bought the property.
Viljoen alleged that until recently, Spoornet was also paying for security services and digital satellite television at Jakavula’s house.