Registered users can save articles to their personal articles list. Login here or sign up here

Transnet’s CEO Gama fights for his job as suspension looms

Letters to place CEO and two other executives on precautionary suspension were served last week.

Transnet chief executive officer Siyabonga Gama sent a letter to the chairman of South Africa’s state-owned port and rail operator in a bid to fight for his job. He is about to be suspended over procurement processes.

Read: Transnet CEO and officials face suspension – chairman 

The decision to place personnel on a precautionary suspension is based on an incomplete report, Gama said in an August 17 letter to Transnet chairman Popo Molefe, which Bloomberg has seen. “It is also very clear from your utterances that you plan to suspend me regardless of whatever submission I make to you. I acted in good faith as a director.”

An investigation by law firm Werksmans Attorneys found that Transnet had squandered billions of rand and broken a raft of regulations while a separate study said Transnet overpaid for locomotives after switching a supply contract to a Chinese rail company. Gama, 51, was named CEO of Transnet in April 2016, having acted in that position for the previous 12 months.

Letters to place Gama and two other executives on precautionary suspension were served last week. The trio, which includes chief procurement officer Thamsanqa Jiyane and supply-chain manager Lindiwe Mdletshe, have until Monday to argue for why they shouldn’t be put on leave. The intention to suspend Gama comes amid a push by President Cyril Ramaphosa’s administration to clamp down on graft and install fresh management at cash-strapped state-owned companies.

Gama survived a board shake-up at Transnet in June, but there had been an “absolute collapse of control of procurement,” Molefe said in an interview on Johannesburg-based Talk Radio 702 on Wednesday.

© 2018 Bloomberg L.P

Get access to Moneyweb's financial intelligence and support quality journalism for only
R63/month or R630/year.
Sign up here, cancel at any time.

COMMENTS   2

To comment, you must be registered and logged in.

LOGIN HERE

Don't have an account?
Sign up for FREE

I am battling to find a single cadre appointed to a SOE than I can say does not have a tarnished track record when it comes to wrongdoing or fingers in the cookie jar.

Don’t waste your time looking, there ain’t one!! But the blatancy, the pleas of innocence, the lack of understanding accountability, lack of value add, etc, etc, bamboozles me!!

Can’t run a bath properly!!

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
Insider GOLD
ONLY R63pm

Moneyweb's premium subscription is a membership service which will give you access to a number of tools to take charge of your investments.
Or choose a yearly subscription at R630pa - SAVE R126

Get instant access to all our tools and content. Monthly subscription can be suspended at any time.

Podcasts

GO TO SHOP CART

Follow us:

Search Articles:Advanced Search
Click a Company:
server: 172.17.0.2