Gama suspension is the latest in a long history of executive instability at the rail utility

A scan through the FTW archives revealed that being an executive at Transnet Freight Rail (TFR) – Spoornet as was – is not a very secure position. Either that, or TFR/ Spoornet has not made too good a job of selecting its senior management in the last decade. This follows the latest management suspension – where Siyabonga Gama, CE of TFR, is facing allegations of procurement irregularities. These included the allocation of a 50-locomotive refurbishing contract to Sibanye Trade Services – despite the company reportedly lacking any experience in this field. Gama is also said to have awarded a R19-million contract to a security firm with alleged links to minister of communications, Siphiwe Nyanda – while only having authority to sign off on contracts worth less than R10-m. Gama was certainly a top-notcher in management terms, being one of five candidates in the running for Transnet's top post of group CE. The internal disciplinary hearing will now carry on, after the Johannesburg High Court last week dismissed (with costs) Gama’s application to have his suspension lifted. Transnet’s comment on the court ruling by Judge Brian Spilg was that it welcomed the end of what it described as a “painful and disruptive” episode. Spokesman John Dludlu said: “The disciplinary hearing will now take its course with an independent chairman.” In turn, Gama has been publicly alleging that the whole affair was a result of political machinations against him. And disciplinary hearings into allegations of mismanagement and corruption are nothing new at TFR/Spoornet. Our dig in the archives went back to 2002, when we reported that a fullscale investigation into alleged irregularities at Spoornet relating to bribery and corruption in the provision of its services was under way – conducted by Transnet’s forensic department, assisted by an external firm Gobodo Forensics. At the same time, in February, Harry Mashele, GM commercial of Spoornet, was suspended on paid leave for the duration of the investigation – a move instigated by the-then Spoornet CEO, Zandile Jakavula. The issues related to the pricing of contracts, the allocation of rolling stock, and customers allegedly being told that they could only deal with Spoornet via certain designated third party logistics companies, for which Spoornet staff were allegedly receiving kickbacks. The suspension was lifted in April when Mashele assumed the post of GM for joint ventures and restructuring – and two months later he was cleared of all allegations of irregularities against him after he received a letter from Transnet CE of the time, Mafika Mkwanazi, stating that the allegations “have been found to be without substance”. However, the name Mashele returns to the limelight some two years later in this sorrowful management saga. But accompanying this, his opposition, Zandile Jakavula, was also in the spotlight – being suspended in early June, 2002, on allegations of improper practices concerning the sale of Spoornet houses. Something for which Spoornet’s head of property management, Chain Vilazaki, was also suspended. In August, Jakavula was removed from his post as CE and relieved of the holiday house he had purchased in Port Alfred – and shunted down the Spoornet line to the position of human resources general manager. The man who assisted him, Vilakazi, was demoted to another senior managerial position. Transnet dismissed Jakavula after his failure to accept the demotion – and all this led to an out-ofcourt settlement between Transnet and Jakavula two years later. Then, in September of that fateful 2002, another senior Spoornet official was suspended from his job, bringing to six the number of executives who had faced similar fates that year. Thomas Mabece, senior manager in the asset protection services, was suspended – on reasons which were described by Spoornet as “internal”, but were understood to involve the awarding of tenders without the correct procedures having been followed. Moving on to November 2004, FTW reported that Spoornet CEO Dolly Mokgatle had revealed that national operation centre GM Ravi Nair and corporate affairs GM Harry Mashele (that name again) had been suspended indefinitely with full pay. At the same time, human capital GM Nkia Ntladi was suspended, only two weeks after being appointed, for gross misrepresentation of his credentials. Through December 2004 into January 2005 and no decision on the fate of three suspended senior managers was forthcoming, FTW was told. Then Transnet’s rail utility was dealt another blow in February by the sudden resignation of CEO Dolly Mokgatle after just 18 months in office. No reason was given for her sudden departure, but failure to deliver appeared to be a central issue, evident from a statement issued by the then minister of public enterprises, Alec Erwin on her resignation. Media speculation also suggested a possible rift between Mokgatle and then Transnet CEO Maria Ramos. It was also that February that the fate of Mashele and Nair were decided. After almost three years in the misconduct limelight, suspended head of corporate affairs Harry Mashele was finally fired while Ravi Nair was reinstated as head of the national operating centre. Spoornet considered the investigation to be an internal matter and would not comment any further on the issue, spokesman Molatwane Likhethe told FTW. According to our archives, there has been relative mismanagement silence at the para-statal railway company until this most recent episode involving their top man, Siyabonga Gama. We await the results of the hearing for the next part of the on-going saga.