Hogan hints at ‘fast-tracking’ Transnet CEO appointment

Public Enterprises Minister Barbara Hogan has undertaken to exercise her prerogative to appoint a new CEO at Transnet, in consultation with Cabinet. “In so doing, I will be mindful of the transformational imperatives of our times, the particular skills and experiences required for the job and the leadership capabilities of the candidate,” she said. She allayed concerns about the impact of the delay when she addressed the portfolio committee on public enterprises last week, saying that not only was Transnet the best performing SOE in the stable from a financial point of view, but its strategic plan and future growth path for the next few years was very much in place, having received extensive Board and management attention in the preceding year. “The competent and very experienced team of senior and middle managers at Transnet are quite capable of steering the company through the carefully formulated growth plans going forward,” she said. But, she added: “It is imperative that matters at Transnet reach a swift resolution in the interests of all concerned and most importantly in the interests of Transnet.” The suspension of one of the contenders for the role, Transnet Freight Rail (TFR) chief executive Siyabonga Gama – with a disciplinary process hanging over him for alleged irregularities in the awarding of two contracts for locomotives – has however met with some regret in the private sector. “I’ve been very much involved with him over the years, and have much respect for him,” said Lawrie Bateman, MD of major container rail operator, MSC Logistics. He professed to having noticed little adverse impact down the management line as a result of Gama’s suspension, as yet. “However,” he told FTW, “there must be all sorts of top-management politics at the moment.” Another industry source who preferred not to be named, thinks differently. “We’ve noticed an effect already,” he said. “Our ops guys said the wheels have come off as far as TFR is concerned.” Not that it’s something you don’t expect when a top executive suddenly goes missing. “The same is true of holding company, Transnet,” he said, “which has been in a bit of a holding pattern since (Maria) Ramos left.” Service levels from TFR in the past couple of months have dropped, in his view. “We’ve noticed this ever since this all started,”