Transnet has complained to the Press Ombudsman about a Sunday Times story it claims was "false, misleading, malicious and defamatory", it said in a statement on its website on Thursday.

Transnet's lawyers lodged the formal complaint following the newspaper's failure to retract a story headlined "Transnet Sold our Sea to Foreigners", said Transnet spokesperson John Dludlu.

He said Transnet made detailed rebuttals of the story to the media and Parliament after it appeared.

Through its lawyers, it asked the paper to publish a retraction and an unreserved apology in its edition of 31 August 2008 (the next publishing date).

"In addition to these open forums, we made available the two relevant agreements — one signed in 2001 and the sale and purchase agreement entered into in 2006 — to MPs who are members of the Portfolio Committees on Public Enterprises and Environmental Affairs and Tourism," said Dludlu.

"The article spoilt the company's good name"

"The retraction and apology has not been forthcoming," he said.

Transnet had gone to the ombudsman because of the scale of the damage the article had caused to the company's good name and the newspaper's continued delay in retracting it and apologising.

Transnet found the ombudsman "an effective and expeditious mechanism" to restore its good name and reputation rather than obtain monetary compensation which could take two years in a court of law.

"Transnet is committed to the highest standards of corporate ethics and good governance," it said in the statement.

"It is this commitment and our track record in upholding these standards that was assailed by the Sunday Times.

"To enable this process to proceed, we will not make further comment whilst this is underway."

The Sunday Times could not be reached for comment on Thursday night.

Sapa