EY completes TransNamib probe

Auditing firm Ernst &Young has completed an investigation into the affairs of TransNamib with the report now with Public Enterprises minister Leon Jooste, The Brief has established.

Jooste ordered an investigation into the state-owned rail operator in August 2021 amid allegations of corruption and mismanagement.

However, TransNamib Chief Executive Officer Johny Smith has repeatedly blamed legacy issues for the demise of the company, which has of late witnessed numerous derailments, a development that has impacted its operations.

Jooste told The Brief that it was too early to present the findings as his Ministry was still studying the report before engaging TransNamib.

“The investigation was only completed in December and we still need to study the findings and then discuss the report with the board,” he told The Brief.

The Minister added that he will meet the TransNamib board regarding the investigation findings "before the end of the month”.

Quizzed if the investigation completion delay will drive up the cost from the initially announced N$650 000, the Minister said, “Not that I am aware of.”

TransNamib has been facing numerous challenges for the past few years. In October, the company revealed to The Brief that it was faced with a locomotive shortage with only 25 operational out of a requirement of 75, and was betting on the refurbishment of 33 of its locomotives and a stopgap lease of seven more to improve operational efficiency and drive-up revenue.

The rail company also embarked on a retrenchment exercise last year that  will see 340 employees leaving at a cost of N$44 million, with a minimum expected saving of N$25 million on an annual basis.

Rate this item
(0 votes)
Last modified on Tuesday, 18 January 2022 17:18

Leave a comment

Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.