Transnet on a mission to meet lender in the international market

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Transnet aims to raise R15bn over the next financial year, mostly from domestic sources after a qualified 2018 audit spooked lenders

State-owned logistics company Transnet is on a mission to re-acquaint itself with lenders in the international markets, after a long absence and a torrid period in which it was tainted with corruption and governance problems.

A qualified audit in 2018 spooked lenders, causing the board to scramble to ward off a default of its of R122bn debt. Letlape also briefed the committee on the actions Transnet has taken to restore good governance and confidence in the parastatal. Letlape said the board has decided not to begin disciplinary proceedings until investigations are completed as there are still more employees who might be added to the list.

Criminal charges have also been delayed and negotiations are underway with China South Rail over penalities for what Transnet said it considers irregular contracts.

 

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