TRANSPORT parastatal Transnet has dismissed two senior managers in charge of security at Transnet Freight Rail following an internal disciplinaryprocess.

The dismissal is in line with the recommendation of an independent and external chairperson of the disciplinary hearing, Transnet said yesterday.

The two were dismissed for manipulating a tender process for security services. They were suspended in November.

Transnet spokesperson John Dludlu would not disclose the names of the two senior managers, but said it was not suspended chief executive Siyabonga Gama.

Dludlu confirmed, however, that the dismissals related to the GNS Security contract that had been under investigation.

General Nyanda Security Risk Advisory Services is owned by Communications Minister Siphiwe Nyanda and was paid R55million by Transnet under a contract awarded by Gama.

A tender was allegedly awarded to GNS without proper processes being followed.

Public Enterprises Minister Barbara Hogan said in December last year Gama was only authorised to sign off on tenders worth up to R10million.

She said GNS continued to benefit from the contract for several months after Nyanda was included in President Jacob Zuma's Cabinet.

Gama was the front-runner to take over as group chief executive from Maria Ramos, who quit to join Absa Bank. He had the backing of the ANC, the SACP, the ANC Youth League and senior management.

But his suspension helped scupper his bid for the top job at Transnet.

Transnet said yesterday the contract for which the two senior managers were dismissed was awarded in a confined process - meaning without an open tender process being conducted or other qualifying bidders being invited - and without following the required governance processes.

Transnet said it is committed to upholding the highest standards of corporate ethics and governance.

"Employees are expected to comply with all company policies and procedures and act in accordance with the company's values which, among others, demand that they act with integrity and in a manner that inspires trust and honesty," the parastatal said.

"Apart from guidance by their consciences, all employees are bound by a compulsory code of ethics. Non-compliance with these basic requirements will not be tolerated and employees will be called to account."