Transnet Freight Rail CEO Siyabonga Gama has been summarily dismissed by the state-owned entity.
His axing is the result of a disciplinary hearing and recommendations made by the chairman. Earlier this month, Transnet said Gama had been found guilty, during an internal disciplinary process, of all the charges laid against him.
Among the charges, Gama faced one of signing off on a R19 million contract to General Nyanda Security Advisory Services (GNS), to provide specialised security. His authority to approve deals was limited to those valued up to R10 million.
GNS is 50% owned by communications minister Siphiwe Nyanda, who has previously denied being involved in the day-to-day running of the security company. The amount paid out to GNS, in total, came to R55 million over a 20-month period.
Silence
Nyanda has previously not responded to requests for comment over the deal which landed Gama in hot water. His spokesman, Tiyani Rikhotso, was not immediately available this morning.
Gama, who has been on suspension since last September, was found guilty of all the charges in a 200-page document. The charges included one of “an irretrievable breakdown in his relationship with Transnet”.
Transnet spokesman John Dludlu says in a statement that the irretrievable charge was added during the hearing as a result of “sustained public attacks mounted by Gama, through his attorney, on the company's board and executive”.
The other charges related to the GNS contract, and another contract entered into for the refurbishment of 50 locomotives.
“The closure of this matter enables Transnet's top management to focus exclusively on the running of the business,” says Dludlu.
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