Question NW1251 to the Minister of Public Enterprises
06 June 2017 - NW1251
Mulder, Dr CP to ask the Minister of Public Enterprises
(1)(a)What positions a certain person (name furnished) currently holds in Transnet and in related Transnet companies and other entities, (b) how said person obtained the positions in each case, (c) what processes her department followed in order to ensure that no conflict of interest exists between the person concerned and third parties and (d) what agreements were reached 9i) at the time of and (ii) after finalization of that person’s appointment to Transnet and/or related entities; (2) Whether she is aware of the personal relationship between that person and a certain person (name and details furnished) who did work for Transnet; if so, (3) Whether her department conducted an investigation in order to prevent a conflict of interests; if so, (a) who conducted the investigation, 9b) on what date the investigation was carried out and (c) what was its result; if not, (4) Whether she will order such an investigation where evidence of a possible conflict of interest is submitted to her; if not so, what are the relevant details? NW1392E
Reply:
(1)(a) The individual was appointed as a Non Executive Director (NED) to the Transnet Board of Directors on 14 December 2014, on a three year term, subject to annual review. By virtue of his appointment as NED, the said Person serves as member and Chairperson of the Board’s Acquisition and Disposal’s Committee and member of the Remuneration, Social and Ethics Committee. He is also Chairperson of the Transnet Second Defined Benefit Fund, the Transport Pension Fund and the Transnet sub-Fund of the Transport Pension Fund.
(b) The terms and conditions of the appointment are governed by the Companies Memorandum of Incorporation (MOI). The Board appointment process, includes sourcing of CVs from the DPE database preceded by the issuing of an advertisement to obtain nominations. At the time, the vetting process included verification of qualifications, disclosure of interests and credit checks. Persons are found to be suitable by virtue of their qualifications, expertise, skills and expertise.
(c) At the time, the vetting process included verification of qualifications, disclosure of interests and credit checks. No conflict was identified. Following approval by Cabinet, appointment by myself, and acceptance by the individual, Transnet’s internal policy of disclosure of interest at each meeting will apply. Should there be any conflict disclosed at any time in the tenure, the Director would need to observe fully and comply with the disclosure and recusal requirements of Transnet’s policies. It is important to note that the disclosure policies of a SOC must be in line with the PFMA 1999 and the Companies Act, 2008.
2. I am not aware of the personal relations of the Director with the name provided by the Member of Parliament. Once they are appointed on the Board, the Companies policies and procedures must be adhered to.
(3)(a-c) As stated above if a conflict is identified or disclosed after appointment the Company is responsible to manage through its applicable policies. Hence, no investigation was done by my Department as there was no cause for one.
4. Should there be any Director who has a conflict and has not properly disclosed, it is the Company who must report to me on the matter. Based on the report, as Executive Authority, I will take a decision on the matter.
Mogokare Richard Seleke Lynne Brown, MP
Director-General Minister of Public Enterprises
Date: Date: