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Transnet acting group chief executive Tau Morwe is leaving the state-owned logistics company after his contract expires on Friday.
In an internal memorandum to staff sent at 6.33pm on Wednesday, Transnet board chairperson Popo Molefe said the board decided not to extend Morwe’s contract which officially comes to an end on Friday, after six months as the state-owned company’s acting head.
Current Transnet acting chief financial officer Mohammed Mahomedy has been appointed as his replacement, also on an acting basis.
This is a surprise move from the Transnet board because Morwe was supposed to appear before the state capture inquiry next week to make a submission on the company’s behalf. Mahomedy will now instead be appearing at the commission before Justice Raymond Zondo after Molefe kicks off Transnet’s evidence on the stand early next week.
City Press understands that a governance official at Transnet has also made a submission to the commission around the R4.9 billion tender for CCTV cameras at the country’s ports which was given to Neotel, and which has been flagged by the inquiry’s investigators as a “tainted deal”. Morwe, as the head of the Transnet National Ports Authority, signed off on that deal.
Read: Transnet’s orgy of greed: How billions were paid in kickbacks and staff cashed in
City Press understands that the Transnet board rescinded its initial request to public enterprises minister Pravin Gordhan to extend Morwe’s contract after it learnt of the Transnet governance official's submission to the Zondo commission.
Morwe replaced former group chief executive Siyabonga Gama who was dismissed by Molefe and the board for his role in the 1064 locomotives tender from which the Guptas received more than R5 billion in kickbacks.
However, in the internal memorandum, Molefe wrote: “The board acknowledges the good work done by Mr Morwe in pursuit of the reorganisation and operations efficiencies at Transnet and wishes to extend its appreciation. To this extent, the board commits to continuing with the programme and plans started by Mr Morwe.
“Transnet urges its management and employees to build organisational cohesion and common focus on the central mandate of the company, which is to move goods and lower the cost of doing business in South Africa.”
Of Mahomedy, the board’s statement said that he had been the company’s acting chief financial officer for the past year.
“The stability of the organisation remains a key focus of the board and this appointment was made with this in mind, giving consideration to Mahomedy’s experience at Transnet over a period of more than 12 years.”
This leaves Transnet with acting officials in most of its senior executive positions. “Transnet is working towards filling critical vacancies that currently exist at executive level, including that of the group chief executive officer and group chief financial officer, in the coming months.”
