Various political parties have called for investigations into claims made in a report on Friday that Public Enterprises Minister Jeff Radebe had lost parastatal Transnet millions of rands in a bungled tender.

Democratic Alliance public enterprises spokesman Rudi Heine said he would ask the Public Protector to investigate the claims in the Mail and Guardian report.

"If the allegations levelled against him are even partially accurate, he should hang his head in shame for making a mockery of privatisation," Heine said.

The newspaper reported on Friday that Transnet had been ordered by the Johannesburg High Court to pay R57-million in damages to a losing bidder -- Sechaba Photoscan -- for a privatisation tender.

It said Radebe "told Transnet to hand a privatisation tender to a company (Skotaville Press) that was patently unsuited to the job -- but in which the ruling African National Congress had an alleged financial stake".

Heine said in a statement the only people empowered by the deal appeared to be those improperly close to the ruling party.

"The Public Protector must probe the allegations regarding minister Radebe and his director-general Sivi Gounden.

"It should be established why the minister ordered that the tender be awarded to Skotaville Press and whether the ANC holds any shares in this company. If the minister and his DG are found to have broken the rules, they should both resign," Heine said.

The New National Party's Dr Willem Odendaal demanded President Thabo Mbeki have the Public Protector probe the matter.

"The extent of these allegations are enormous and extremely disturbing.

"These strong allegations against his minister and director general of public enterprises, who deliberately and wilfully took part in awarding the tender to a company that allegedly give financial support to the ANC exclusively for political activities leaves him no choice," Odendaal said.

In his reaction, United Democratic Movement Chief Whip Cedric Frolick called on the Scorpions to investigate the claims.

"It appears as if business principles were sacrificed to accommodate political loyalty in awarding the bid to Skotaville Press, which the court proved to be (significantly more) incompetent when compared to its rival bidder.

"The UDM condemns the fact that South African taxpayers are expected to foot out R57-million to compensate Sechaba Photoscan, a company that should have been awarded the tender in the first place.

"The whole saga exposes Black Economic Empowerment and privatisation under the ANC government as a tool for rewarding political loyalty, and nothing more," Frolick said.

The Mail and Guardian reported that after a drawn-out court battle over the tender award, Transnet now had to pay R57-million in damages to a bidder it knew to be better qualified but dropped after Radebe's intervention.

In the end, all parties agreed Sechaba Photoscan should have been awarded the tender in the first place.

"Evidence prepared for the court action suggests Radebe and his director general Sivi Gounden disregarded the merits of competing bids to end up favouring a company (Skotaville Press) which was financially close to the ANC," the report said.

The saga started three years ago when rival companies put in bids for Transnet Production House, the parastatal's in-house printing division offered for sale as part of government's restructuring of state assets.

It should have been a lucrative business for the successful tenderer, but court evidence was that Production House was "run into the ground" and recorded a R8-million loss at the end of the first financial year under Skotaville Press.

Judge Suretta Snyders' large damages award to Sechaba Photoscan last month was based on the argument that with a captive market and if synergies with the new owners were properly exploited, Production House should have made an annual profit of about R20-million, the report said.

Transnet served notice to appeal, but would contest the amount only, not the merits.

Gounden denied knowing of any financial relationship between Skotaville Press and the ANC, and said his and Radebe's intervention was "based on price".

Skotaville Press bid R11-million and Sechaba Photoscan R10-million.

Gounden also denied "instructing" Transnet, saying his and the minister's was a "recommendation".

ANC treasurer general Mendi Msimang said there was no documentation to show that the ANC held any Skotaville Press shares, the Mail and Guardian reported.

Radebe could not be reached for comment on Friday, and his spokesperson said he was "out of town".

Further comment from Gounden was still being awaited at the time of writing.

With acknowledgement to Sapa.