The future of Transnet top executive Siyabonga Gama hangs in the balance following the decision by the state logistics utility to institute disciplinary action over allegations of breaches in procurement contracts.
Gama, the CEO of Transnet Freight Rail, Transnet's biggest division by revenue, is believed to be one of the three candidates short-listed to take over as permanent CE of Transnet.
Transnet spokesman John Dludlu yesterday, 27 August 2009, declined to confirm if Gama had been suspended pending the disciplinary hearing.
Dludlu announced on Wednesday, 26 August, the company had instituted a disciplinary process against Gama. This related to alleged “serious breaches in certain procurement contracts”. He declined to provide details of these allegations.
However, a source at Transnet said Gama had not yet been suspended. The source questioned the timing of the announcement and noted that Gama was being tried in the court of public opinion.
Ayanda Shezi, spokeswoman for the Department of Public Enterprises, said yesterday Transnet's board would run the disciplinary process and inform the government, its sole shareholder, of the outcome. She said it was premature to say what action would be taken regarding the outcome.
It was not clear whether the department would temporarily stop the process of finding the permanent CEO for Transnet.
Recently, the department said one of candidates had been proposed for the position and the decision to appoint would need to be ratified by the Cabinet.
Dludlu declined to comment on whether the disciplinary hearing had started. “This is an internal company matter and we do not wish to comment further at this stage in due deference to all parties concerned,” he said on Wednesday.
This suggested that there might be a succession battle at Transnet that has divided the board.
The transport parastatal has dismissed claims of a split over the successor to former CEO Maria Ramos, now head of Absa.
Acting CEO Chris Wells took over the reins after Ramos left in March, but has said he is not interested in the job.
The apparent leadership battle is taking place at a critical moment for Transnet, which is in the second year of the roll-out of its five-year R80bn capital investment.
Source: Business Day
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