Transnet tight-lipped over CEO
PUBLIC Enterprises has kept mum on whether Siyabonga Gama will be made permanent Transnet CEO when the freight parastatal’s board recommends a candidate in 12 weeks’ time.
THE Department of Public Enterprises has kept mum on whether Siyabonga Gama will be made permanent Transnet CEO when the freight parastatal’s board recommends a candidate in 12 weeks’ time.
Department spokesman Colin Cruywagen has confirmed that Transnet’s board has started the process of finding a permanent CEO.
Mr Gama has been at the helm of the freight and logistics parastatal since April in an acting capacity, when Brian Molefe was seconded to struggling utility Eskom.
Mr Cruywagen said Transnet’s board would make a recommendation on a suitable successor for Mr Molefe to Public Enterprises Minister Lynne Brown. She would then discuss it with the Cabinet for confirmation.
However, Mr Molefe was not the only Transnet executive to be seconded to assist Eskom. In July, chief financial officer Anoj Singh was also seconded to Eskom for six months, leaving Transnet with acting chief financial officer Garry Pita.
In September, both Mr Molefe and Mr Singh’s appointments at Eskom were made permanent.
Mr Cruywagen would not be drawn on whether Transnet’s board would look within or cast the net wider for a replacement for Mr Molefe.
He also sidestepped questions about whether or not the board was considering Mr Gama. Mr Cruywagen would only say: “There is experience in all aspects of freight logistics. Furthermore, the company has a healthy balance sheet. This was achieved despite the downturn in commodities.”
Transnet spokesman Mboniso Sigonyela said Mr Gama was a “highly experienced” member of the executive team and the company was grateful to him for taking on the responsibilities of acting CEO.
Mr Sigonyela said the board was committed to running the process of appointing a CEO.
Mr Gama, who has been at Transnet since 1994, previously contended for the highest position six years ago. He has been Transnet Freight Rail CEO since 2005. This is the parastatal’s biggest division.
Since assuming the hot seat in an acting capacity, Mr Gama has signed off on major funding deals for Transnet’s market demand strategy — its 10-year, R340bn-380bn programme to recapitalise the country’s ports, railways and pipelines.
In June, Transnet also went on a non-deal roadshow to woo both domestic and international investors. This month, the parastatal secured a $2.5bn funding guarantee from China Export and Credit Insurance Corporation. Transnet has said it will use the 15-year Chinese guarantee to finance railway, ports and pipeline projects.
Last month, it secured a R12bn club loan from domestic and international financial institutions including Nedbank, Old Mutual Specialised Finance, Absa, Futuregrowth Asset Managers and Bank of China.
In June, Transnet got R3bn from Germany’s KfW Development Bank to finance 240 locomotives to be built by Bombardier at the parastatal’s facilities in Durban. This forms part of a R50bn deal to procure 1,064 locomotives from Bombardier, General Electric, China South Rail and China North Rail.
Transnet has also become the first state-owned firm to secure significant financing from China as it has signed a 15-year, R30bn loan agreement with China Development Bank.