The Bottom Line: Monday Comment by TIM COHEN.
Schrempp ’s departure bodes ill for Transnet’s foreign borrowing
TRANSNET has a crisis with the departure of director Juergen Schrempp. It’s not just that he left two months after being reinstated to the board; it’s also the rumours about the reasons.
Former Mercedes CEO Schrempp is a controversial figure after the failure of the Daimler Chrysler merger. But he has been an extraordinary ambassador for SA, and many people at the factory in East London probably owe their jobs to him without knowing it. He remains important for Transnet’s efforts to raise large sums of money abroad.
The Sunday Times reports that he left because Transnet chairman Mafika Mkwanazi submitted names of candidates for CEO to Public Enterprises Minister Malusi Gigaba, with these names purportedly approved by the board when this was not so. The allegation is that the Gupta family pushed for the appointment of CEO Brian Molefe. Further, it seems Mkwanazi has a business relationship with the Guptas.
If true, this is more than a procedural irregularity. If foreigners get a sniff of anything underhand, they won’t lend Transnet any money. The government’s infrastructure roll-out depends on Transnet. Take it out of the equation, and the New Growth Path has problems.