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Transnet group chief executive Siyabonga Gama has been given 10 days to provide reasons as to why he should not be summarily dismissed.
Senior sources in the state-owned logistics company told City Press on Thursday that Transnet board chairperson Popo Molefe wrote a letter to Gama on Wednesday. In it, he asked Gama to state why he should not be fired outright.
This position is a drastic departure from the one the Transnet board had previously adopted. Last month, Molefe wrote to Gama and two of his executives asking for reasons they should not be suspended pending the outcome of a disciplinary hearing.
According to a senior Transnet source who saw the “lengthy” letter sent to Gama on Wednesday, Molefe reminded him that he was a board representative who had to act in the best interests of the company. In the letter, Molefe was also said to have cited a list of Gama’s alleged transgressions, which are outlined in a report on the 1 064 locomotives tender authored by law firm Mncedisi Ndlovu & Sedumedi (MNS) Attorneys.
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In the letter, Molefe also said the relationship between Gama and the board had irretrievably broken down.
City Press understands that Molefe cited correspondence between Gama and the board in the past month, in which Molefe claims that Gama showed him “contempt” and “disrespect”.
Molefe allegedly also accused Gama of tender irregularities and having caused Transnet to lose billions of rands during the acquisition progress around the controversial locomotives tender, from which Gupta-linked businesses scored more than R5 billion in kickbacks.
City Press has learnt that the Transnet board decided to withdraw its intention to have him placed on suspension at a meeting on Tuesday. The board opted instead to have him explain why he should not be summarily dismissed instead.
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Two senior sources familiar with developments told City Press on Thursday that the board, along with a four-member legal team, briefed Public Enterprises Minister Pravin Gordhan about the possibility of dismissing Gama outright without conducting a disciplinary hearing during a marathon meeting earlier this month.
Gama had previously stated that he would challenge any attempt to remove him.
Gama could not be reached for comment on Thursday afternoon. Calls to him went straight to voicemail.
Acting Transnet spokesperson Nompumelelo Kunene was not available for comment.
Last month, Gama was handed a letter asking him to explain why he should not be suspended for his role in the awarding of the highly-inflated R54.5 billion tender. Transnet Engineering chief executive Thamsanqa Jiyane, as well as former supply chain manager Lindiwe Mdletshe, were suspended earlier this month.
Three sources told City Press that MNS Attorneys was appointed to conduct the disciplinary hearings. However, MNS chairperson Mncedisi Ndlovu could not be reached for comment.
A report by MNS Attorneys also recommended that Transnet lay criminal charges against former Transnet chief executive Brian Molefe, his former chief financial officer Anoj Singh, board subcommittee chairperson Iqbal Sharma and Gupta lieutenant Salim Essa.
It also recommended that Gama be disciplined for “being part of the team ... that misrepresented the true reasons and extent of the increase of the initial contract value” to the board; for “failing to exercise reasonable care and skill”; and for “failing to properly manage his subordinates, who compromised the fairness of the procurement process”.
Jiyane, it found, should be disciplined for allegedly contravening Treasury regulations and failing to ensure that the tender process was above board.
