Johannesburg - Transnet spent R2,2 billion, or 42 percent, of its R5,3 billion operational and capital expenditure on black economic empowerment (BEE) firms during the year to March, Tami Didiza, the spokesman of the transport parastatal, said yesterday.
"Our objective in the new financial year is to significantly increase spending on BEE companies. The black economic component of any company we give out business to is a very crucial determinant of any successful tender," Didiza said. The BEE spending report was based on information from divisions and business units which reported.
Often criticised for its lack of BEE spending, South African Airways (SAA), the national carrier, gave 47 percent, or R603 million, of its total operational and capital expenditure to BEE firms. SAA is 80 percent owned by Transnet.
The report showed SAA's total expenditure stood at R1,3 billion during the period under review, based on third-quarter figures provided. Of the total figure, about R1,2 billion was classified as "discretionary" under operational expenditure from which almost all of the BEE spend was recorded.
Another big spender, port management division Portnet, put more than R466 million, or 48 percent, of total expenditure in the coffers of BEE firms, while commuter rail operator Metrorail spent about R250 million of its R365 million budget.
Spoornet, the rail division, led the list of those who disappointed, spending only 22 percent, or R197 million, from R902 million.
Transwerk, Petronet and Propnet spent 13 percent, 15 percent and 21 percent, respectively.
Ravi Nair, Spoornet's general manager of restructuring and joint ventures, said the rail firm had saved R171 million by March by implementing parts of its turnaround model.
He said Halcrow, a management consultancy, had identified 120 turnaround measures that could be completed by March 2004. Halcrow's initiatives aimed to achieve a R1,7 billion turnaround within three years.