State-owned Transnet has commissioned an investigation to determine the facts and associated circumstances with regard to recent allegations in the media casting doubt on the integrity pertaining to the award of a tender that resulted in the Fidelity Group being appointed an outcomes-based security (OBS) security service provider (SSP).

Transnet said on August 14 that it was concerned about media reports detailing the prevention-focused OBS solution to combat theft and vandalism on the Transnet Freight Rail (TFR) rail network.

To combat ongoing theft and vandalism of essential infrastructure across the organisation’s logistics network, TFR awarded security contracts to five SSPs to service its corridors with state-of-the-art security aimed at supporting a consistent and dependable rail service.

Security and vandalism of infrastructure and assets lead to loss of revenue and increased security and maintenance costs for critical infrastructure for operations, the company said, insisting that it followed an open and competitive bidding process and subsequently underwent a comprehensive bid evaluation procedure in the awarding of the contract.

On August 10, 2022, Transnet issued a request for proposals (RfPs), inviting open and competitive bid submissions for the provision of security services. The process of bid evaluation and award is conducted through various governance committees and is not determined by any single individual, Transnet said.

However, the integrity of this process has been called into question.

“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 State-owned entity said.

It has been alleged that the cancellation of a 2021 tender for the manufacturing of a contact wire reflector (CWR) device on behalf of Transnet was motivated to allow for the award of Fidelity as one of the OBS SSPs.

However, Transnet has maintained that the scope of services of the CWR and OBS tenders were entirely unrelated.

“The CWR tender called for the manufacturing of the CWR device developed and patented by Transnet, whereas the OBS tender calls for real-time prevention and detection of theft and vandalism in TFR operations,” it explained.

The company said an independent investigation into the CWR tender commissioned by Transnet in 2022 confirmed that Fidelity did not respond with a bid to the RfPs regarding the manufacturing of the CWR device.

“Transnet has zero tolerance for collusion and corruption and, therefore, should Transnet be presented with factual evidence of such conduct, Transnet will reopen the matter,” the company said.