Transnet CEO, 2 supply chain heads given suspension notices
Siyabonga Gama, Thamsanqa Jiyane and Lindiwe Mdletshe have 7 days to submit challenge
Transnet on Wednesday moved to suspend CEO Siyabonga Gama and two other senior officials, accelerating the cleanup at the parastatal after the appointment of a new board in May.
Gama, chief procurement officer Thamsanqa Jiyane and supply chain manager Lindiwe Mdletshe were served by the board with notices of intention to suspend them on Wednesday. The Dispatch understands the decision to serve them with the notice was taken on legal advice. The three now have seven days to provide reasons they should not be suspended.
It remains to be seen whether the board will allow Gama to present Transnet’s results early next week.
Transnet, mired in allegations of state capture, is the biggest freight company in the country and has a monopoly or nearmonopoly over ports, freight rail and fuel pipelines.
Gama has been in the firing line after it emerged that he, former CEO Brian Molefe and Gupta associates might have contravened the Public Finance Management Act (PFMA) in relation to the purchase of 1,064 locomotives.
Last year, Transnet engaged Werksmans Attorneys to investigate what it called media allegations of impropriety linked to the purchase of locomotives from General Electric, Bombardier Transport, China South Rail and China North Rail.
Werksmans recommended that Transnet institute disciplinary action against individuals identified in the report and that law enforcement agencies be brought in to investigate matters identified in the report. Jiyane and Mdletshe were implicated along with Gama in the Werksmans report.
Leaked Gupta e-mails contain claims that Gupta-linked companies received multibillionrand kickbacks as part of that R50bn locomotive deal.
Following the Werksmans report another legal firm, Mncedisi Ndlovu & Sedumedi (MNS) Attorneys, was hired by Transnet to conduct another probe after claims that the first report was incomplete. The MNS report mirrored Werksmans.
There is also a draft National Treasury report that implicates Gama.
Public enterprises minister Pravin Gordhan on Wednesday described to MPs the interventions at Transnet in the last five months to rebuild it and strengthen governance. This included appointing a new board and an acting CFO. –