Two senior Transnet Port Terminals employees have accused senior executives of being involved in alleged procurement irregularities and collusion surrounding contracts worth more than R900 million, claiming the state-owned entity suffered hundreds of millions of rands in losses.
The allegations are contained in sworn affidavits submitted to the Directorate for Priority Crime Investigation, commonly known as the Hawks, and supported by correspondence and other documents seen by the Mail & Guardian.
The whistleblowers allege that senior executives were aware of concerns about the procurement of materials-handling equipment at Transnet Port Terminals' Richards Bay operations but failed to act.
One of the employees told the M&G that senior executives had been shielded while a single senior manager, Thulasiwze Dlamini, had been held responsible for procurement failures.
"This looting involves senior executives who were complicit and aided the procurement capture project," the whistleblower said.
"The company lost close to a billion and we're not seeing accountability except being told of one Dlamini, a senior manager who has since taken the fall for the corruption frenzy. He did not participate in this corruption alone. The top executives are involved, but they are being shielded."
The allegations centre on contracts for materials-handling equipment at Richards Bay, which were awarded to High Power Equipment Africa (HPE Africa).
According to one whistleblower, the Auditor-General identified more than R100 million in fruitless and wasteful expenditure in one financial year, while the whistleblowers allege that equipment supplied under the contracts did not comply with tender specifications and that some machines were left idle because there were insufficient drivers and operators to use them.
The M&G has also seen correspondence dated July 2025 from the office of the Auditor-General raising a series of procurement lapses.
The affidavit states that the contracts involved equipment that did not comply with the tender specifications and that HPE Africa supplied more machines than there were available drivers and operators to operate.
"On both contracts, the plant machines that were provided by HPE Africa were firstly not in accordance with tender specifications. Secondly, HPE Africa had provided more plant machines than the drivers available to operate and drive the plant machines," the affidavit states.
"The sum-total of the failure to comply with tender specification as well as providing more machines than the drivers and operators available resulted in an irregular fruitless and wasteful expenditure in that they were paying for machines that were not being used."
The whistleblowers further allege that they raised concerns about suspected fraud, corruption and collusion with senior Transnet officials, including Transnet Port Terminals chief executive Jabu Mdaki, but that their warnings were ignored.
The M&G has seen correspondence in which concerns about the procurement process were raised with Transnet management. The matter was subsequently escalated to the Auditor-General.
Transnet has disputed the suggestion that its executives were implicated by the forensic investigation into the procurement process.
The company has said that a forensic investigation conducted by Fundudzi Forensic Investigations made no findings against the Transnet Port Terminals executive committee. However, the whistleblowers' affidavits allege that senior officials beyond the manager identified in the Fundudzi investigation were involved or complicit in the procurement process.
"The entire Divisional Bid Adjudication Council is involved. They are involved or active participants in the commission of a crime. And at a very least were complicit," one affidavit states.
The affidavits name senior executives whom the whistleblowers allege were involved in or aware of the procurement irregularities. The M&G has deliberately not named those officials at this stage.
The whistleblowers allege that the focus on Dlamini has obscured the alleged involvement of other officials.
The Fundudzi investigation identified Dlamini in connection with the procurement failures, according to the documents, while the whistleblowers contend that the alleged wrongdoing involved a wider group of officials.
The dispute also centres on the appointment of another service provider, RADDS, following litigation over the procurement process.
According to one affidavit, RADDS was unsuccessful in an initial tender for a 36-month contract, with AQUA and Eyamakhosi emerging as successful bidders.
RADDS subsequently challenged the procurement process in court and succeeded in April 2024.
The whistleblower alleges that, despite the court outcome, Transnet did not simply appoint RADDS but instead appointed HPE Africa through a confined procurement process.
"HPE Africa colluded with RADDS and Transnet officials to get the appointment on a confinement on a price which is three times higher than the price which RADDS had tendered for. The price was even higher than the price AQUA was appointed for," the affidavit states.
The M&G has also seen the court judgment relating to the RADDS litigation, which provides documentary evidence concerning the dispute and the procurement process.
The whistleblowers further allege that although HPE Africa specified Hyundai equipment in its tender documents, equipment owned by RADDS was ultimately used.
"Apart from the fact that the entire HPE Africa contract which was worth over R954m is irregular as a result of the overpriced and idling equipment, Transnet has paid over R100m in fruitless and wasteful expenditure in just one financial year," the affidavit states.
Transnet has maintained that it has taken action against procurement irregularities and has referred matters to law-enforcement agencies. In a statement issued following the M&G's enquiries, Transnet said that, following the Fundudzi investigation, it had lodged a formal complaint with the Directorate for Priority Crime Investigation in terms of section 34 of the Prevention and Combating of Corrupt Activities Act.
The matter, it said, had been referred to the Durban Serious Corruption Investigation Unit.
However, in response to questions from the M&G, Transnet said it could not confirm whether cases had been opened against the executives named by the whistleblowers because no CAS numbers had been provided.
"In the absence of CAS numbers being provided, it is not possible to confirm whether any SAPS investigations are underway into the executives mentioned. At this stage, Transnet is not aware of any investigations," Transnet Port Terminals said.
The company said a number of investigations and disciplinary processes remained under way, including matters relating to Richards Bay Terminals.
"Where necessary, these processes are being pursued in collaboration with relevant law-enforcement agencies. Furthermore, following the Fundudzi investigation, Transnet has logged a formal complaint with the Directorate for Priority Crime Investigation (DPCI) in terms of section 34 of the Prevention and Combating of Corrupt Activities Act. The matter has been referred to the Durban Serious Corruption Investigation Unit," it said.
Transnet also said that the executives referred to by the whistleblowers were not involved in the procurement processes and that some of those named had not been employed by Transnet Port Terminals.
The whistleblowers' allegations raise questions about the extent to which Transnet's internal processes identified and dealt with the concerns raised by employees before the matter was escalated to the Auditor-General.
The M&G understands that one senior executive identified in connection with the procurement irregularities remains suspended after being placed on suspension in April, while continuing to receive a salary.
The allegations contained in the affidavits have been placed before the Hawks.