Transnet Reports Loss of R7 Billion in Current Financial Year, SA Not Surprised

• State-owned enterprise Transnet's financial losses for the current financial year have increased from the previous year
• It lost R5.1 billion in the previous year, and in the current financial year, the figure went up to R7 billion
• South Africans discussed what is happening in Transnet, and some commented on the employees' work ethic

Tebogo Mokwena, Briefly News's current affairs journalist, covered current affairs relating to the economy, finance, banks, and state-owned enterprises during his seven years at Daily Sun and Vutivi Business News.

JOHANNESBURG — Transnet seems to be losing more money each year, as it reported higher financial losses in the current financial year compared to the previous financial year.

Transnet loses R7 billion

SABC News reported that the state-owned enterprise lost R7 billion in the current financial year, compared to the R5.1 billion it lost in the previous financial year. Litigation costs from Sasol and Total, valued at R4.8 billion, also worsened the financial burdens.

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It's not all doom and gloom, as Transnet reported that its revenue increased by 11% because of improved rail volume performance. This resulted from its recovery plan initiatives, which saw it transport 151 million tons, an increase from the 141 million tons transported in the previous year.

South Africans not surprised by the losses

Netizens on Facebook expressed their surprise at the amount of money Transnet lost in the current financial year.

Frank Evangelish Mtseteka said:

"From the aftermath of state capture and the Zondo Report on Transnet, it's very hard to manoeuvre the bend."

Mpetjeng Makua said:

"That's the result of brotherhood tenders."

Mienie Koortsen said:

"This is bad news. How many citizens could have benefitted from the opposite of this?"

Gontse Lekgetho asked:

"What's the problem with Transnet? Is it maybe a burden of a bloated workforce or revenue generation issue?"

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Sehowa Filla Makgamatha said:

"Yet they will get bonuses. The board or minister must demote the top executives. They failed to deliver."

SIU and Transnet take Nedbank to court

In a related article, Briefly News reported that Transnet and the Special Investigating Unit are taking Nedbank to court.

The SIU revealed that for a year, Nedbank received almost R3 billion in interest rates from swap transactions between it and Transnet.

Source: Briefly News