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The Department of Public Enterprises Acknowledges Transnet Losing Large Numbers Employees

The Department of Public Enterprises has acknowledged that Transnet has lost a large number of highly experienced employees and is attempting to remedy the situation.

The department is collaborating with Transnet’s board on a turnaround strategy for the failing state-owned enterprise.

Minister of Public Enterprises Pravin Gordhan lamented the decision by previous administrations to allow a significant portion of Transnet’s highly skilled personnel to accept voluntary severance packages.

This, according to Gordhan, was one of the factors that lead to Transnet’s dire situation.

“Firstly, we have a debt burden of approximately R147 billion; secondly, export volumes have been declining; and thirdly, declining volumes imply less revenue for Transnet, less process for companies, and thus less corporate tax and tax collection. Thus, a vicious cycle exists.”