Transnet bosses face axe as new board steps up cleanup

Gama, two others served with notices of suspension

Transnet has moved to suspend CEO Siyabonga Gama and two other senior officials, accelerating the cleanup at the state-owned enterprise (SOE) after the appointment of a new board in May.

Yesterday, Gama, chief procurement officer Thamsanqa Jiyane and supply chain manager Lindiwe Mdletshe were served with notices of intention to suspend them by the board.

Sowetan’s sister publication Business Day understands that the decision to serve them with a suspension notice was taken by the board based on legal advice. The three have until tomorrow to provide reasons why they should not be suspended.

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.

Gama has been in the firing line after investigations found that he, former CEO Brian Molefe and Gupta associates may have contravened the Public Finance Management Act for serious breaches of statutes, regulations and corporate governance, and unlawful conduct in relation to the purchase of 1 064 locomotives.

In 2017, Transnet engaged corporate and commercial law firm Werksmans 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.

The three were implicated in the Werksmans report.

The leaked Gupta e-mails contain claims that Guptalinked firms received multibillion-rand kickbacks as part of that R50-billion locomotive deal.

There is also a draft Treasury report on a forensic probe into allegations at Transnet and Eskom, which implicates Gama.

Earlier this month, Fin24 reported that global consultancy McKinsey had admitted helping Gama with his thesis to obtain an MBA.

The 2017 Gupta e-mails revealed that two months before Gama became Transnet CEO‚ he enjoyed a two-night stay at five-star The Oberoi in Dubai courtesy of the Guptas.