Zuma left Transnet vulnerable — Hogan
Former president insisted that Gama be appointed as the state-owned enterprise’s group CEO
Former president Jacob Zuma left Transnet, one the country’s most strategic state-owned enterprises, vulnerable by insisting that Siyabonga Gama be appointed as group CEO.
This is according to former public enterprises minister Barbara Hogan’s testimony at the Zondo commission of inquiry into state capture. She served as public enterprises minister from May 2009 to October 2010, when Zuma fired her.
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 Gupta family, Zuma and his son Duduzane are at the centre of state capture allegations, with the families standing accused of using their political influence to benefit commercially from large public procurement contracts.
Hogan told the commission that Zuma had insisted that Gama be appointed as CEO back in 2009, despite the board at the time recommending the appointment of Sipho Maseko, Telkom’s group CEO, who is credited with fixing the company, and the fact that Gama at the time was facing serious allegations of misconduct.
Gama was recently fired by Transnet following more allegations of wrongdoing against him and is in a legal battle with the entity in a bid to keep his job. His axing comes after investigations found that he, former CEO Brian Molefe and Gupta family associates may have acted unlawfully in relation to the purchase of 1,064 locomotives for R54bn.
The Labour Court in Johannesburg is yet to rule whether his firing should be overturned.
Gama is also facing a R166m lawsuit, which Transnet said was an overpayment made to Gupta-linked Regiments Capital. This relates to a consulting contract awarded to Regiments as part of Transnet’s purchase of the locomotives.
Hogan told the commission that in November 2008, before she was appointed public enterprises minister, then Transnet CEO Maria Ramos announced that she was stepping down in
February 2009. The Transnet board had gone through a professional process to identify a suitable replacement.
The first recommendation was Pravin Gordhan, but he had withdrawn from the process and was later appointed finance minister in 2009.
The board then, after restarting the search for a new CEO, recommended Maseko.
Hogan was appointed minister in June 2009 and a month later she briefed Zuma on Transnet. She told him that at the next annual general meeting, Maseko would be appointed.
‘‘Chair, I was extremely shocked. The president would not hear of any candidate but Siyabonga Gama.” Hogan testified that she highlighted the serious misconduct charges Gama faced and that it would not have been in the interest of Transnet “to appoint a group CEO whose time would be caught up in defending himself”.
She said Zuma had insisted that no appointment be made until Gama had gone through a formal disciplinary.
Gama’s disciplinary was only completed in June 2010, a year later, and he was eventually fired from the entity. “Transnet was left completely vulnerable, with acting positions all the way through,” Hogan said.
Gama’s first firing from Transnet was in relation to the awarding of a security contract to GNS, a company linked to former communications minister Siphiwe Nyanda. Gama returned in 2011 as head of Transnet Freight Rail after successfully defending his dismissal.
Hogan said at the time there was fierce support for Gama inside the ANC, the ANC Youth League under the leadership of Julius Malema and the SA Communist Party. She was attacked for not appointing him Transnet CEO.
The EFF, is still supporting Gama and called on him earlier in 2018 to fight his removal from Transnet.
It has also launched an attack against Gordhan, the current public enterprises minister.
Hogan was fired in October 2010 and replaced by Malusi Gigaba. Gama was eventually re-employed at Transnet and appointed group CEO.
Hogan’s testimony at the inquiry continues on Tuesday.