Jakavula demotion sends out strong message

Leonard Neill ZANDILE JAKAVULA has been removed from his post as chief executive of Spoornet and relieved of the holiday house he purchased in Port Alfred following a Transnet board meeting held last Thursday. Instead he has been shunted down the Spoornet line to the position of human resources general manager. The man who assisted him in the purchase of the house, Spoornet property executive Chain Vilakazi, has been demoted to a senior managerial position to be disclosed. The two men have until today (August 16, 2002) to decide whether they will accept the new roles or take immediate dismissal from the rail company. The board's decision came after a review of the disciplinary enquiry into claims that Jakavula had acted inappropriately when he purchased the Spoornet-owned house earlier this year. He bought the property for R83 000, which was considered to be well below market value, and commissioned Spoornet employees to renovate it at a cost of R363 000. The Transnet board found him guilty of 'serious misjudgement' in agreeing to allow Spoornet employees to handle the renovations at the company's cost and deferring payment until the work had been completed. He had also made the purchase without following accepted company procedures. To page 28 From page 1 Transnet chief Mafika Mkwanazi has said that Jakavula will have to return the house to Spoornet at no cost to the company, and to pay three months interest on the money borrowed from Spoornet. Vilakazi was said to have misrepresented information on transfer documents for the sale, disregarded company housing policy and wrongfully arranged for the renovations. The two men will sacrifice half of their incentive bonuses for the 2001/02 financial year and will receive final written warnings, with salaries fixed for one year. Releasing the details of the hearing and the Transnet decision, chairman Bongani Khumalo said it sent a message to Transnet employees that impeccable standards of behaviour were demanded, and that inappropriate and unprincipled behaviour would not be tolerated. "This applies especially to senior executives, who are expected to set examples of good judgment, ethical business conduct, accountability and diligence." Tshidi Nyama is to continue in her position as acting chief executive until a decision has been taken on Jakavula's successor.