Transnet and Eskom have denied allegations of targeting black security service providers from benefiting from opportunities. File picture: Supplied
Image: Supplied
South Africa’s state-owned rail freight and logistics company, Transnet, and power utility Eskom have both refuted alleged exclusion of black security firms from doing business with them.
This comes as the Association of Private Security Owners of South Africa (Tapsosa) has levelled serious allegations of exclusion of black security firms against Transnet and Eskom.
Sindiswa Changuion, Tapsosa's spokesperson, highlighted a troubling trend wherein at least 26 of their black-owned security firm members find themselves excluded and unable to do business due to purported blacklisting from the Central Supplier Database (CSD).
This exclusion, she stated, has left many unable to sustain their businesses for more than four years, impacting livelihoods and leading to inevitable retrenchments as legal battles ensue with these government entities.
"The impact this blacklisting has been huge," a contractor who chose to remain anonymous shared. "We are now looking at retrenching our administrative staff. What seems to be a challenge is the payments, which are not coming as the system has been blocked."
Alongside delays in payments, contractors have reported that other government entities have used their exclusion as a rationale to terminate existing contracts, leaving them in a dire situation.
Changuion expressed alarm at what she described as a "systematic purging" of black-owned security companies, asserting that the alleged transgressions against these firms have often not been adequately investigated before severe sanctions were enforced.
The majority of the affected security firms are facing an existential crisis after being barred from working with state-owned entities, while some of the alleged transgressions have not been properly investigated.
Changuion cited Section 33 of South Africa’s Constitution, which mandates that entities be afforded fair opportunities to contest their exclusion, a principle she believes has been disregarded.
Responding to these allegations, Eskom spokesperson Daphne Mokwena clarified that the restrictions applied to suppliers, affecting at least 101 contractors, are part of a broader strategy aimed at enhancing governance and transparency, as well as combating fraud and corruption.
However, she pointed out that only one of the contractors provides security services to the power utility.
"Eskom notes the recent allegation by Tapsosa that 26 black-owned companies, which formed part of the 101 suppliers restricted, had been referred to the National Treasury without due process. This is denied, with the evidence that Eskom can confirm the referrals followed Eskom’s internal governance and supplier discipline processes, which are applied objectively and consistently and are based on assessed misconduct and available evidence," she stated.
Furthermore, she indicated that Tapsosa is not a party to the supplier discipline matters involving the 26 restricted suppliers, and Eskom can confirm that of the 53 referrals for restriction made to National Treasury, only one supplier provides security-related services.
Eskom Group Chief Executive, Dan Marokane, also affirmed their commitment to confronting fraud and supplier misconduct.
He noted that the utility aims to process newly referred supplier discipline cases within 90 days, asserting that a determined effort was under way to restore public confidence through transparent consequences for procurement irregularities.
Meanwhile, Transnet has flatly denied any intention to specifically target black-owned security contractors, asserting that only one such firm has been affected by ongoing investigations.
After a recent announcement regarding the restriction of seven companies, Transnet emphasised that forensic investigations led by the Special Investigating Unit (SIU) revealed misconduct, none of which involved security service providers.
This comes as Transnet announced on July 9, 2026, that Transnet Port Terminals (TPT) had successfully applied to the National Treasury to restrict seven companies from conducting business with the State following forensic investigations, supported by the SIU, which uncovered serious misconduct, including fraud, bribery, theft, collusion, and the submission of false information.
"None of the seven companies were security service providers. Transnet remains committed to conducting all supplier-related processes in accordance with applicable legislation, National Treasury instructions, and the principles of fairness, transparency and due process," it said.
