Two of the subsidiaries of parastatal transport group, Transnet, will have to stay without a full-time CEO until the end of an internal disciplinary hearing, according to Transnet spokesman, John Dludlu. This, he told FTW, was the one involving Siyabonga Gama, the CEO of Transnet’s railway unit until he was suspended seven months ago pending a disciplinary process relating to alleged tender irregularities – primarily surrounding the R900-million contract for purchasing 50 locomotives. The public enterprises minister, Barbara Hogan, revealed to the press at the time that, in 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-million 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. That meant that both Transnet Freight Rail (TFR) and Transnet Port Terminals (TPT) were without full- time bosses, because immediately after the Gama suspension, Chris Wells, himself “acting” group CE of Transnet , did a bit of employment card-shuffling. He 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), was named as acting interim head for TPT. Dludlu said that this would be the case until the Gama issue was decided, and the independent external arbitrator made his findings public. Information forwarded to FTW on behalf of Lunga Ngcobo, media liaison officer of TPT, confirmed that this was also the case at the terminal operators. However, although he “knew nothing official”, Dludlu alerted FTW to a press report in that day’s Business Report. In it writer Slindile Khanyile said that the newspaper had “established” that Gama had “won his arbitration hearing and is due back at work in two months”. But neither Dludlu nor Gama’s attorney, Themba Langa, would confirm or deny this – with Langa being quoted as saying he knew nothing about the rumour. “The arbitrator told us that he is still busy with the judgment and I think it is fair to wait for him to finish,” he added.
