Transnet CEO posts await finalisation of Gama hearing

There are still no permanent chief executives at either Transnet Freight Rail (TFR) or Transnet Port Terminals (TPT) – and there won’t be until the internal disciplinary hearing against former TFR CE Siyabonga Gama is completed, according to information released to FTW by Transnet. And an expected date for the end of the hearing – currently being adjudicated by an independent, external arbitrator – is just as elusive, although firm promises were made that FTW would be informed when it reached its final day. Gama is facing disciplinary action over alleged irregularities in a locomotive deal and the awarding of a separate contract to General Nyanda Security Advisory Services, which is owned by the communications minister, Simpiwe Nyanda. The public enterprises minister, Barbara Hogan, has already revealed to the press that the R900-million rail contract was for the purchase of 50 locomotives. Hogan added that, in the case of the locomotive deal with the Electro-Motive Sibanye Joint Venture, it was alleged that Gama “failed to give effect to a condition determined by the Transnet board in concluding and implementing the contract”. She said the Electro-Motive Sibanye Joint Venture had been paid about R550-m since the deal was signed in May 2007. Also according to Hogan, the security company linked to the communications minister was paid R55-million by Transnet under a contract awarded by Gama. Hogan confirmed that he was authorised to sign off only on contracts worth up to R10-m. Meantime, Chris Wells, acting group CE of Transnet (another senior post still awaiting confirmation), has put temporary CEs in place to head up the rail and port terminals operations. Tau Morwe, the CE of TPT, agreed to act as CE of TFR pending the finalisation of the disciplinary process. At the same time, Karl Socikwa, Transnet’s group executive (commercial), is acting as interim head for TPT.