UPDATE: Transnet boss has ten days to somehow escape being fired
Transnet's board has decided to fire Siyabonga Gama as group CEO and has given him 10 days to give reasons why this should not happen.
Former Transnet group CEO Siyabonga Gama. Picture: Facebook
Siyabonga Gama, group chief executive of Transnet, has been given ten days to save himself from being dismissed from the organisation.
Within those ten days he is expected to provide reasons as to why he should not lose his job.
The Transnet board has this afternoon served Gama with a letter informing him of its intention to terminate his employment.
The reasons provided relate to alleged serious violations of his financial, procurement and fiduciary responsibilities as Transnet CEO. As a result, the board had lost trust and confidence in his ability to lead the parastatal, according to a media statement.
Minister of Public Enterprises Pravin Gordhan has also been informed of the board’s decision.
According to senior sources within Transnet, board chairperson Popo Molefe has earlier written a letter to Gama asking him why he shouldn’t be fired immediately.
Previously, Molefe reportedly told Gama and two other executives that they needed to motivate as to why they shouldn’t be suspended pending the outcome of a disciplinary inquiry, but he now appears to have taken a stricter line.
In Molefe’s letter, he accused Gama of showing him “contempt” and “disrespect” and said their relationship was broken beyond repair.
Gama is also reportedly accused in the letter of alleged tender irregularities and of having caused Transnet to suffer billions in losses around the controversial locomotives tender that saw the Guptas allegedly score more than R5 billion in kickbacks.
Sources told City Press that the board had briefed minister of public enterprises Pravin Gordhan on their decision to try and dismiss Gama outright, rather than allowing a disciplinary process to take place.
A report by MNS Attorneys recommended that Transnet discipline Gama for his role in the allegedly dodgy tender as well as lay criminal charges against former Transnet boss Brian Molefe, former chief financial officer Anoj Singh, board subcommittee chairperson Iqbal Sharma and alleged Gupta lieutenant Salim Essa.
Transnet’s questionable procurement of more than 1,000 locomotives at a cost of more than R38 billion took place in 2014. The tender is part of the ongoing state capture investigation by the Hawks.
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