The minister of public enterprises and his director-general have denied accusations that they used their influence to award a multimillion-rand tender to a company that is closely linked to the ANC.

Opposition parties have called for the resignation of Jeff Radebe and his director-general, Sivi Gounden, over their alleged interference in a R57-million civil claim.

The Johannesburg High Court awarded damages to Sechaba Photoscan after it lost a privatisation tender - to take over Transnet's production house - to Skotaville Press, which was allegedly not suited for the job but had close ties with the ANC. It is claimed that Radebe and Gounden used their influence to award the tender to Skotaville.

Yesterday, in a statement, Radebe and Gounden denied the minister had been involved in the bidding process. They also said Gounden "did not instruct" Transnet to award the tender to any particular bidder.

The statement said Sechaba's legal claim had also not been brought to the notice of the department and that Transnet's apparent concession that damages were due to the company might be in breach of the Public Finance Management Act.

Transnet is challenging the amount of damages due.

On Friday, the Mail & Guardian newspaper reported that the court had heard evidence that Transnet had allowed Skotaville to operate in contravention of the tender specifications and the sale agreement.

Skotaville allegedly failed to implement a staff share scheme and its employees remained on the Transnet payroll for several months. According to the newspaper, Skotaville also failed to pay its rent and sold off company assets to make ends meet.

The Transnet board would now fully investigate the allegations, the statement said.

With acknowledgement to the Sunday Times.