Transnet launches probe into allegations of tender fixing on security contracts

Transnet has begun an investigation into the recent doubts cast on the integrity of the award of five security contracts that resulted in the Fidelity Group, which is already being investigated by Eskom for alleged tender fraud, becoming one of the service providers.

The transport utility said in a statement yesterday that it had followed “an open and competitive bidding process and subsequently underwent a comprehensive bid evaluation procedure” in Transnet Freight Rail’s (TFR) award of security service contracts to five security service providers.

Transnet said it had noted “with concern” recent media reports about the outcomes-based security (OBS) solution to combat theft and vandalism on the TFR rail network. The contracts for the security service providers to service its rail transport corridors was to support TFR’s ability to provide consistent and dependable service to its customers, it said.

In recent weeks, media reports and other allegations had cast doubt on the integrity of the OBS tender process that resulted in the Fidelity Group being appointed as one of the OBS SSPs.

“In view of allegations made by the African Security Congress (ASC), in correspondence to Transnet and in the media, Transnet has, as a measure of diligence, commissioned an investigation to determine the facts and associated circumstances with regard to the allegations pertaining to the award of the tender.

“It will be premature to comment or ascribe any accountability prior to the completion of the investigation,” the transport utility said.

Transnet also described as “regrettable” a narrative that the cancellation of a 2021 tender for the manufacture of a contact wire reflector (CWR) device on behalf of Transnet was motivated, to allow for the award of the Fidelity Group as one of the OBS SSPs.

The scope of services of the CWR and OBS tenders were unrelated. The CWR tender called for the manufacturing of the CWR device developed and patented by Transnet, whereas the OBS tender called for real-time prevention and detection of theft and vandalism in TFR operations.

An independent investigation into the CWR tender commissioned by Transnet in 2022 also confirmed that Fidelity did not respond with a bid to the Request for Proposals regarding the manufacturing of the CWR device.

On the tender process for the security contracts, Transnet said that on August 10, 2022, it had issued a Request for Proposals, inviting open and competitive bid submissions for the provision of security services.

The process of bid evaluation and award was conducted through various governance committees and was not determined by any single individual. Transnet said it would reopen any matter where it was presented with factual evidence of collusion and corruption.