Transnet’s R12 billion court battle, and big fight over unfinished projects

Here’s what is happening in and affecting South Africa today:

• Transnet multibillion-rand deal in court: Today APM Terminals, a subsidiary of Maersk, will seek a court order to block Transnet’s multibillion-rand privatization deal with ICTSI to upgrade Durban’s Container Terminal Pier Two. APM, the runner-up in the tender, plans to challenge the 25-year concession award to ICTSI, which bid R12 billion. The case will be heard over two days before Durban High Court Judge Rob Mossop, with APM alleging irregularities in the award process. [News24]

• SIU guns for new MP: President Cyril Ramaphosa has authorized the Special Investigating Unit (SIU) to probe the controversial 2011 reinstatement of Siyabonga Gama as Transnet Freight Rail (TFR) CEO. Gama, who was dismissed over serious allegations and is now an MK party MP, was reappointed despite previous disciplinary findings. The investigation will also cover Transnet’s payments for Gama’s legal fees and a contract awarded to Siphiwe Nyanda’s security company. [Business Day]

• Eastern Cape multimillion-rand project woes: Projects worth R70 million in Mhlontlo Local Municipality, including a vehicle testing centre and three sports fields, remain unfinished, with no clear explanation from the municipality. The Tsolo sports field, budgeted at R27 million and started in October 2018, was incomplete by 2020. The contract was terminated in March 2021, and a new contractor, appointed in November 2023 with a R16-million budget and a December 2024 completion date, is currently on hold pending an internal investigation. [GroundUp]

• Mogale City’s raw sewage disaster: An investigation by News24 outlines how Mogale City’s wastewater infrastructure has collapsed, leading the municipality to intentionally dump thousands of litres of raw sewage into rivers and residential areas. This pollution affects key water sources like the Vaal, Crocodile, Bloubankspruit rivers, and Hartbeespoort Dam. Despite over R35 million from the Department of Water and Sanitation for repairs, the situation has worsened. [News24]

• Markets: The rand firmed on Friday against a weaker dollar, as markets weighed up bets on the size of a rate cut expected in the world’s biggest economy. On Monday (16 September), the rand was trading at R17.71 to the dollar, R23.31 to the pound, and R19.68 to the euro. Oil is trading at $71.55 a barrel. [Reuters]