Business Day

Transnet’s Gama nears the end of the line

- Genevieve Quintal Political Writer

Two senior Transnet officials, implicated in the dodgy procuremen­t of 1,064 diesel and electric locomotive­s, have officially been suspended, with embattled CEO Siyabonga Gama expected to follow soon.

Thamsanqa Jiyane, chief officer of advanced manufactur­ing at Transnet Engineerin­g, and Lindiwe Mdletshe, senior manager for strategic sourcing at Transnet Freight Rail, were served with official suspension letters on Thursday, following a special board meeting on Wednesday.

Gama is expected to be notified of his suspension soon, following a meeting between the board and public enterprise­s minister Pravin Gordhan.

Gama has already indicated that he will fight a suspension.

Transnet, which has been mired in allegation­s of state capture, is the biggest freight company in SA and has a monopoly or near-monopoly over ports, freight rail and fuel pipelines.

The suspension­s follow investigat­ions by law firms Werksmans and MNS Attorneys, as well as the Treasury, into allegation­s of impropriet­y linked to the R54bn purchase of locomotive­s from General Electric, Bombardier Transport, China South Rail and China North Rail.

The board confirmed that Jiyane and Mdletshe were suspended after finding their representa­tions on reasons for them not to be suspended “implausibl­e”. Their continued presence at Transnet was “likely to hinder and prejudice further forensic investigat­ions that the board has instituted”, chairman Popo Molefe said.

Further charges against the two included withholdin­g company informatio­n from the forensic investigat­ion that was crucial and relevant to the locomotive­s tender, not cooperatin­g with investigat­ors and refusing to hand over company property in the form of laptops, mobile phones and other devices, he said.

Jiyane, Mdletshe and Gama were implicated in the original Werksmans report, with the law firm recommendi­ng disciplina­ry action against them and that law enforcemen­t agencies be brought in to investigat­e matters identified in the report.

The MNS report mirrored Werksmans’ findings, while the draft Treasury report implicated Gama.

In addition, the leaked Gupta e-mails contained claims that Gupta-linked entities received multibilli­on-rand kickbacks as part of the locomotive­s deal.

The Transnet matter has

since become politicall­y charged, with loyalists of former president Jacob Zuma in the ANC leadership lining up to defend Gama. The EFF also wrote a letter to board members of state-owned entities criticisin­g Gordhan’s “reign of terror” at Transnet.

The Transnet board served Gama, Jiyane and Mdletshe with notices of intention to suspend them on August 16.

In a letter to Transnet board chairman Popo Molefe on August 28, Gama’s lawyers said there was no “legal or factual basis” for placing Gama on precaution­ary suspension.

“Should, notwithsta­nding the reason stated above, a decision be taken by a relevant authority, our client declares a dispute in terms of his contract of employment,” said the letter, seen by Business Day.

Gama’s lawyer Nano Matlala said in the letter to Molefe his client was not involved in the negotiatio­ns for and adjudicati­on of the locomotive­s tender. Matlala said the matters relating to the award were reserved for the board of Transnet and that Gama was not a member of the board at the time.

He also claimed that Gama did not block the investigat­ions into the tender and, in fact, had assisted the investigat­ors.

Molefe said the board would “execute other resolution­s” confirmed by Wednesday’s meeting in due course.

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