THE African Rail Industry Association (ARIA) says State-owned freight utility Transnet’s reluctance to implement structural reforms is costing the economy and South Africa’s international reputation dearly, especially if it continues to disguise its true financial state.
ARIA CEO Mesela Nhlapo told journalists during a media briefing held on November 15 that Transnet had no intention to reform unless the law compels it to and that it is trying to “trade itself out of a massive disaster”.
She claimed that Transnet had asked its customers before the release of its interim results for the six months ended September 30 to pay the freight utility 30 days early, while itself postponing payments to suppliers, so that its cash position would look better.
Nhlapo also deemed it suspicious that Transnet swung to a R5-billion profit in the 2021/22 financial year from an R8-billion loss in the previous financial year, owing to property and asset re-evaluations of about R11-billion, and yet has a R27-billion underspending record on its property and asset maintenance for the last decade.
This while Transnet’s volumes have
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