Business Day

Transnet boardroom battle heats up

• CEO Gama threatens to declare a dispute after he, along with two other excutives, are served notices of intention to suspend them

- Natasha Marrian and Genevieve Quintal

The fight between embattled Transnet CEO Siyabonga Gama and board chairman Popo Molefe is escalating, with Gama threatenin­g to declare a dispute if he is suspended.

The fight between embattled Transnet CEO Siyabonga Gama and board chairman Popo Molefe is escalating, with Gama threatenin­g to declare a dispute if he is suspended.

Gama, chief procuremen­t officer Thamsanqa Jiyane and supply-chain manager Lindiwe Mdletshe were served by the Transnet board with notices of intention to suspend them on August 16. The trio were asked to provide reasons why they should not be suspended after investigat­ions found that Gama, former CEO Brian Molefe and Gupta associates may have contravene­d the Public Finance Management Act, and were implicated in unlawful conduct in procuring 1,064 locomotive­s.

City Press reported on Sunday that Gama had earlier written to public enterprise­s minister Pravin Gordhan to end the “current very public but unnecessar­y debacle at Transnet that [was] spearheade­d by the infantile actions of the chairman of the board”.

He said as “shareholde­r representa­tive”, the minister should deal with what he called “the destabilis­ation that is brought about largely by the chairman”, referring to Molefe.

A subsequent letter to Molefe from Gama’s attorney, Nano Matlala, dated August 28, said there was no “legal or factual basis” for placing Gama on precaution­ary suspension. “Should, nothwithst­anding the reason stated above, a decision be taken by a relevant authority, our client declares a dispute in terms of his contract of employment,” the letter said.

Three investigat­ions were conducted, by Werksmans Attorneys, Mncedisi Ndlovu & Sedumedi (MNS) Attorneys and th Treasury.

Werksmans was commission­ed by the previous Transnet board in 2017 to investigat­e allegation­s of impropriet­y linked to the purchase of locomotive­s from General Electric, Bombardier Transport, China South Rail and China North Rail.

The MNS report mirrored the Werksmans investigat­ion and the draft Treasury report into allegation­s at Transnet and Eskom, which implicated Gama.

The leaked Gupta e-mails also contain claims that Guptalinke­d entities received multibilli­on-rand kickbacks as part of the R50bn locomotive deal.

Matlala said Gama had assisted investigat­ors. In the August 28 letter, he said Gama 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. Gama was not a member of the board then.

He said it was “unfortunat­e” that Gama had been asked to provide reasons why he should not be suspended, when it was apparent from Molefe’s “media statements and interviews” that he had already made up his mind to suspend Gama.

Public enterprise­s spokespers­on Adrian Lackay said on Sunday the minister was on a state visit to China and would be in a better position to consider Gama’s request later this week.

Molefe said that Gama and others had been afforded the opportunit­y to answer to the allegation­s against them to the board.

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