TRANSNET SOC LIMITED - Transnets statement on the reported irregularities

Transnet’s statement on the reported irregularities

           TRANSNET SOC LTD
           JSE Code: TNET

           TRANSNET’S STATEMENT ON THE REPORTED IRREGULARITIES

            12 July 2017
           As part of the Transnet’s year-end audit, Transnet’s external auditors submitted a report of
           reportable irregularities to the Independent Regulatory Boards of Auditors (IRBA), in line
           with their professional obligations. The reportable irregularities relate to non-compliance
           and non-adherence to stipulated internal procurement processes and requirements of law in
           procurement contracts entered into between Transnet and various service providers by a
           number of senior officials.

           In terms of the Audit Profession Act, the Board of Transnet had 30 days to make
           representation to the external auditors of steps taken to mitigate the risks identified, after
           which the external auditors were then required to report back to IRBA to confirm if:

           *          no reportable irregularities are taking place; or
           *          the suspected reportable irregularities are no longer taking place and that adequate
                      steps have been taken to the prevention or recovery of any loss as a result thereof, if
                      relevant, or
           *          the reportable irregularities are continuing.

           The irregularities are no longer taking place. The affected senior officials have been
           suspended, legal action has been taken where appropriate, and disciplinary actions are
           underway. Furthermore, Transnet is no longer using the affected suppliers and all
           payments have been put on hold until finalisation of the legal investigation, where monies
           will be recovered, including interest and legal costs.

           There have not been any significant movements on the prices of our instruments and the
           spread on the Transnet SOC Ltd. Bonds are stable.




            __________________________
            B E GOTHA
            Manager: Treasury Compliance
            Date: 12 July, 2017


Transnet SOC Ltd           Carlton Centre      P.O. Box 72501
Registration Number        150 Commissioner    Parkview, Johannesburg
1990/000900/30             Street              South Africa, 2122
                           Johannesburg        T +27 11 308 3001
                           2001                F +27 11 308 2638

Directors: LC Mabaso (Chairperson) SI Gama* (Group Chief Executive) Y Forbes GJ Mahlalela PEB Mathekga ZA Nagdee VM Nkonyane BG Stagman   www.transnet.net
GJ Pita* (Chief Financial Officer)
*Executive
Group Company Secretary: NE Khumalo

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