TFR investigation

[Dylan Knott]

http://www.fin24.com/articles/default/d ... 24_2550341

[Steve Appleton]

In today's Business Day (27th August 2009), page 21:

Transnet probes top boss over "contract breaches".

Transport parastatal Transnet said yesterday it was investigating a top executive, Siyabonga Gama, for alleged "serious breaches in certain procurement contracts". This announcement could dash Gama's chances of becoming a permanent CEO of Transnet. Gama, the CEO of Transnet Freight Rail, Transnet's largest division by revenue, is believed to be one of three candidates short-listed to take over as the permanent CEO of Transnet, which is headed by acting-CEO Chris Wells. Spokesman John Dludlu said the company had instituted a disciplinary process in relation to Gama. -- Artwell Dlamini.

[Steve Appleton]

Addition report on Business Report's website at:
http://www.busrep.co.za/index.php?fSect ... Id=5140610

Transnet hauls top job pick over coals

Unions suspect ploy to block Gama's appointment
August 27, 2009

By SLINDILE KHANYILE

TRANSNET has started a disciplinary process against Siyabonga Gama, the chief executive of Transnet Freight Rail (TFR), who was widely expected to take the reins at the group following the departure of Maria Ramos in February.

The process "relates to alleged serious breaches in certain procurement contracts", Transnet said yesterday.

Business Report has established that the charges against Gama relate to the cancelled tender for 212 diesel locomotives and a tender awarded to GNS, a security firm. It is unclear if Gama has been suspended, but it is believed there is an intention to suspend him and that he will appear before a disciplinary hearing today.

Two people familiar with the matter, who spoke anonymously to Business Report yesterday, questioned the timing of the allegations and said they appeared to be a ploy to block Gama from being appointed as the new group chief executive.

Business Report has also learnt that Gama was recommended to Public Enterprises Minister Barbara Hogan by the board of directors and that his appointment was being discussed by the cabinet yesterday.

Attempts to confirm if this was on the cabinet's agenda yesterday were unsuccessful.

"Apparently the charges relate to tender irregularities for the 212 diesel locomotives that was cancelled and another tender for a security company. The company's name is GNS, it's a company owned by General Siphiwe Nyanda," said one of the people. Nyanda, now minister of communications, could not be reached for comment.

Contacted yesterday, Gama said: "I can't comment."

Randall Howard, the general secretary of the SA Transport and Allied Workers' Union, said it was not formally informed of these developments but it had become aware of them this week.


"We are concerned with the timing of these allegations and we think this is linked to the top job," said Howard. "We believe there is a battle between transformation and perpetuation of the status quo. We can't conclusively link it, but we are concerned with the timing."

Transnet did not respond to specific questions about this suggestion yesterday.

Plans to acquire 212 diesel locomotives were ditched after it emerged that there was a personal relationship between an official from Electro-Motive Sibanye, the preferred bidder, and another official from TFR.

Electro-Motive Sibanye is a joint venture between Sibanye Trade & Services (STS) and Electro-Motive Diesel and Locomotive Company.

Transnet said after the joint venture's nomination it came to its attention that there was a personal and business relationship between the then-general manager for capital programmes at TFR, Percival Mosweu, and Gustav Adams, a director of STS. Mosweu chaired the tender adjudication steering committee.

Gama chaired the Spoornet Acquisition Council which reviewed all work by other committees in the tender process before making recommendations to the board of directors.

Previously, Transnet dismissed suggestion that Gama could be blamed for irregularities pertaining to this tender.

Sources said Transnet had called an extended exco meeting yesterday where everyone would be officially informed about the disciplinary action.