http://www.businessday.co.za/Articles/C ... ?id=137423
Axed Gama strolls back into old job at Transnet
Proves the well-connected are untouchable, say Cosatu, DA
LINDA ENSOR
Published: 2011/03/17 06:34:51 AM
CAPE TOWN — Transnet Freight Rail CEO Siyabonga Gama has been reinstated to the position from which he was dismissed — proving to the labour movement that people with the right political connections are "untouchable".
Mr Gama’s reinstatement, announced yesterday by newly appointed Transnet group CE Brian Molefe, suggests the high standards demanded of executives of state-owned enterprises can be lowered when their political allies believe they are under attack.
His return is also a victory for the African National Congress’s (ANC’s) policy of cadre deployment, and a defeat for those who try to enforce sound corporate governance at parastatals.
It marks the end of a fierce boardroom battle in which Mr Gama pitted himself against former public enterprises minister Barbara Hogan and other rivals to become Transnet CEO, which was fought all the way to the office of President Jacob Zuma .
That struggle was precipitated by the departure of former CEO Maria Ramos, whose post was filled in an acting capacity by Chris Wells, who left Transnet late last year.
Mr Gama’s reappointment upset the Congress of South African Trade Unions (Cosatu) and the Democratic Alliance (DA) as it flew in the face of the findings of a disciplinary committee that he had been negligent in his oversight of procurement.
The committee found he had irregularly awarded, in "highly suspicious circumstances", an R18,9m security contract to GNS, a company owned by former communications minister Siphiwe Nyanda. Mr Gama was dismissed on the basis of these findings, but this year the Transnet board, under its new chairman Mafika Mkwanazi, overturned this sanction as being "too harsh".
Instead Mr Gama was given a final written warning which was considered more "appropriate" as he had not been found guilty of corruption and/or dishonesty.
He was reinstated as a member of Transnet’s executive committee without a portfolio last month.
Cosatu was outraged at the decision to reinstate him.
"Cosatu believes that (Mr) Gama’s reinstatement, despite evidence of negligence and mismanagement, is in conflict with the government’s commitment to root out incompetence in the public service and state-owned enterprises," the federation’s spokes- man Patrick Craven said.
"This decision will feed into the perception among many workers that there are people in SA who are untouchable because of their political connections.
"In contrast to workers who appeal to board chairmen against unfair treatment and are routinely ignored, certain well-connected individuals seem to be able to escape justice and move into well- paid senior positions."
Another example of preferential treatment was that accorded to convicted fraudster and friend of Mr Zuma, Schabir Shaik, Mr Craven said.
DA public enterprises spokes- man Manie van Dyk endorsed Cosatu’s sentiments and said it was now up to Mr Gama to prove himself by getting better results from Transnet Freight Rail.
Other appointments to the executive committee were Tau Morwe as CE of Transnet National Ports Authority (previously CE of port terminals); Mark Gregg-Macdonald as planning and monitoring executive (previously head of commercial operations); Khomotso Phihlela as CE commercial (previously CE of Transnet National Port Authority) and the confirmation of Karl Socikwa as CE of Transnet Port Terminals.