UPDATE 1-South Africa's Transnet to clamp down on unauthorised spending

South Africa's Transnet said on Monday it would clamp down on unauthorized expenses after uncovering problems with procurement at the state logistics firm.

Transnet, which operates nearly three-quarters of the African rail network, the bulk of which is in South Africa, has been investigating allegations of corruption in the procurement of 1,064 diesel and electric locomotives.

The firm said during its results presentation that the year had been "characterized by a number of serious procurement related governance challenges which has impacted on the company's reputation and the ability to attract investment."

Transnet said its board and management were developing an action plan to prevent irregular expenditure, which is referred to by Treasury as expenditure other than unauthorized expenditure, incurred in contravention of existing rules.

The firm reported full-year revenue ending March 2018 up 11.3 percent to 72.9 billion rands ($5 billion), boosted by an increase in volumes of export coal and container volumes.

Coal export volumes it transported by rail for the financial year rose 4.3 percent to 77 million tonnes, the firm said.

Earnings before interest, tax, depreciation, and amortization (EBITDA) rose 18 percent to 32.5 billion rands from 27.6 billion rands in the previous reporting period.

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