Another Transnet executive falls — this time, the head of ports infrastructure

Leadership problems continue to stalk Transnet.

This time, the CEO of the Transnet division responsible for improving the infrastructure of ports across South Africa, Pepi Silinga, has taken leave of absence while a probe into allegations against him of corruption and mismanagement is ongoing.

Transnet has shared little information about the nature of the allegations Silinga faces, which are being investigated by an independent law firm that has been appointed by the state-owned transport group.

In a short statement, Transnet said it had received “a number of allegations regarding activities” at Transnet National Ports Authority, headed by Silinga, without saying he is implicated in wrongdoing.

Transnet added that Silinga had offered to take leave of absence to allow the investigation to proceed “without the perception of interference and to ensure that the integrity of the process is not compromised”.

The state-owned enterprise has accepted Silinga’s offer to step aside, and he will be replaced on an acting basis by Phyllis Difeto, a ports managing executive, while the law firm carries out its investigation.

The trade union movement has more insight into the allegations that Silinga faces. The South African Trade and Allied Workers Union (Satawu), one of the trade unions recognised at Transnet, has long called for Silinga to be suspended with immediate effect, saying he faces “serious allegations of corruption and mismanagement” regarding contracts issued by Transnet National Ports Authority.

Satawu said Silinga allegedly awarded a R300-million security fencing tender to a former employer — a process the trade union believes was marred by irregularities.

“The union has previously called on the management several times, including board members, the CEO and the minister of public enterprises, to take actions against Mr Silinga following allegations that he appointed his close allies in his office who did not even meet the minimum requirements for those top positions at the entity,” Satawu said.

The union sent a complaint to the Special Investigating Unit (SIU) about the allegations against Silinga. The SIU is already investigating a raft of corruption and impropriety allegations relating to Transnet’s affairs. Most of the allegations stem from the State Capture period when Transnet was a key site of theft and looting through improperly awarded tenders.

Daily Maverick approached the SIU for comment about whether it had received the complaint from Satawu, but the SIU has yet to respond.

Silinga’s career

Silinga, who has an engineering and management background, has a 30-year career in the public sector.

He was appointed as the CEO of Transnet National Ports Authority in 2020. Before joining the ports authority, he served as the CEO of the Coega Development Corporation, where he led the development and management of the Coega Special Economic Zone. He had previously served on the boards of national and provincial public entities.

At Transnet, Silinga has had a testy relationship with the private sector. As the CEO of Transnet National Ports Authority, he was responsible for the functioning of the national port system (in a landlord capacity), providing port infrastructure and marine services at the eight commercial seaports in South Africa.

In September 2023, the Durban Chamber of Commerce and Industry called for Transnet executives to be fired for failing to turn around the state-owned company’s logistics operations, mainly the freight rail network and ports.

The Durban Chamber of Commerce and Industry, which represents more than 2,000 small, medium and large businesses, called on Public Enterprises Minister Pravin Gordhan to fire Transnet executives Portia Derby (group CEO), Sizakele Mzimela (head of freight rail) and Silinga. Derby and Mzimela resigned while Silinga remained in his position.

Read more in Daily Maverick:

• After the Bell: How a loss of confidence in Transnet CEO Portia Derby saw her run out of track


• Transnet leadership exodus continues, with Siza Mzimela the latest to leave

The chamber said businesses were collapsing and losing revenue daily because of the port challenges, adding that Transnet needed a suitable and accountable executive team.

Transnet’s container ports (mainly Durban and Cape Town) are among the world’s worst, in the bottom 10 of the 348 ranked in the World Bank’s latest Container Port Performance Index. DM