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Transnet to name interim freight rail head

Transnet said yesterday, 2 September 2009, it intended to announce an interim head for Transnet Freight Rail (TFR), its largest division by revenue, in “due course”. It also confirmed that it had suspended Siyabonga Gama, CEO of TFR and a contender for the post of group CEO.

Gama was suspended on Tuesday, 1 September, pending the outcome of an internal disciplinary hearing. He faces charges related to the acquisition of 50 “like new” locomotives, and to a contract with a security company that reportedly has links with Communications Minister Siphiwe Nyanda.

His suspension could spark a political row as the African National Congress (ANC) has already backed him for the post of group CEO. It could also set off a showdown between the ANC and the Transnet board.

ANC spokesman Brian Sokutu said Gama's suspension did not mean he was guilty, or that he was out of the running for the post of group CEO.

A source told Business Day that Transnet called an impromptu executive committee meeting yesterday to inform Transnet's senior managers about Gama's suspension.

Asked about this meeting, Transnet spokesman John Dludlu would not comment on internal discussions of governance structures.

Dludlu said the disciplinary process had already begun. It was in accordance with the company's procedures and would follow the “time scales” for which provision had been made.

Source: Business Day

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