'I can tell you now that Transnet will be high on the agenda, because there are questions that need to be answered'

And Barbara Hogan, the Minister of Public Enterprises, is being accused of misleading parliament by implying that General Nyanda Security Advisory Services (GNS) - of which Nyanda is a former director - received an illegitimate contract from the parastatal.

Hogan has come under fire from the company and also from Themba Langa, the attorney of suspended Transnet Freight Rail chief executive Siyabonga Gama.

The two accuse Hogan of "deliberately" misleading parliament when, in a written response, she alleged that Gama had exceeded his mandate when he signed a security deal with GNS.

Replying to a question posed by the opposition Congress of the People, Hogan said GNS had been paid about R55-million during the 20 months the contract had been in operation, from December 2007.

She said allegations levelled against Gama suggested that he had "exceeded his delegated authority for contracts concluded without a tender process when he authorised the conclusion of the specialised security contract".

The chairman of the Public Enterprises Portfolio Committee, Vytjie Mentor, also entered the fray, saying her committee would summon Hogan and Transnet to explain "in detail" what was going on.

"I can tell you now that Transnet will be high on the agenda, because there are questions that need to be answered," she said.

Mentor said that Transnet had missed an opportunity to set the record straight on exactly what was happening at the state entity, especially regarding the suspension of Gama.

"I have gone through as much information on Transnet as I can, and the understanding that I got was that it was the chief operating officer who signs the contracts. The minister will have to come back and explain her reply with evidence, of course.

"If what the minister says does not tally with what the contracts show, there is going to be a serious problem," Mentor said.

"You know, Tony Yengeni was found to have misled parliament a few years back and there were serious repercussions. We just hope this is not the case with Minister Hogan."

The Sunday Times has seen a letter dated December 6 2007 from Transnet, informing the security company that the state entity had decided to grant it a "comprehensive total security package" from December 1 2007 to December 31 2008.

The document, which outlines the contract's terms and conditions and expected performance targets, was signed off by Brian Fredericks, Transnet's chief procurement officer, who stated that GNS would be called upon "shortly" to sign a legal document.

The Sunday Times has also seen the legal document, which was only entered into six months after the contract had been granted to General Nyanda Security Advisory Services.

The chief operating officer of Transnet's Freight Rail, Peter Fearnhead, signed the contract in June 2008.

In the contract, Transnet said it had identified security risks to its operations as a result of theft and other criminal activity.

"Transnet Freight Rail ... wishes to engage the services of a security specialist to provide a comprehensive total security package in all its operations throughout the Republic of South Africa ...

"General Nyanda Security, the provider of the above service, has agreed to provide and assist in the implementation of the service referred to above and as more fully described in this agreement," the contract reads.

It has emerged that when the contract expired in December 2008, GNS was allowed to continue providing services to Transnet for three months pending a tender process for the same deal.

However, this process was not completed within three months, so the company continued working on a month-to-month basis.

Attorney Langa insisted that Hogan's response to the national assembly was "deliberately misleading" and "gives the impression that Nyanda got a R55-million contract which he does not deserve".

Gama was suspended by Transnet last year for issues related to two contracts; one of which concerned GNS. His disciplinary hearing is set down for January 13.

Langa said Hogan should "retract" her statements and "apologise" to Gama for misleading parliament into believing his client had exceeded his authority for signing off on the deal.

"The minister has a duty to be fair, and she has court papers which she should have gone back to, to check her facts," Langa said.

The Sunday Times understands that Nyanda, who was still an active director in the company when the deal was granted to GNS, is livid at Hogan following her response to parliament and that he would take the matter up with President Jacob Zuma.

"The minister failed to obtain factual information on the said contract. Her response seems to imply that Nyanda and his company were the recipients of a corrupt contract. This does not bode well for the integrity of the minister," a source said.

It is understood that the matter was likely to be discussed at the next cabinet meeting.

GNS said the contract it had signed with Transnet was legitimate and that there was nothing scandalous about it.

"We would like to place on record that the minister is no longer a director at GNS, having resigned shortly after his appointment. He is therefore not conflicted in any way," the company said.

The Sunday Times can also reveal that Transnet will terminate the existing security contract, that has been running with GNS on a month-to-month basis, at the end of January.

Hogan's spokesman, Ayanda Shezi, said the ministry did not wish to comment on the matter.

With acknowledgements to Nkululeko Ncana and Sunday Times.