Transnet has fired a key executive just four months after he was appointed. Are the surviving executives up to the job of managing one of the country’s biggest businesses? Stuart Hess reports
TRANSNET has fired executive director Sipho Nyawo following an independent investigation into credit card abuse. The parastatal briefed Minister of Public Enterprises Stella Sigcau on Wednesday and had the decision ratified by Cabinet that night. His dismissal is effective immediately.
Nyawo, who joined the board in July 1996 to head Portnet, was suspended last week as the investigation by retired judge John Trengrove drew to a close. A ministry representative says the investigation found Nyawo guilty of 15 of the 56 charges against him.
A previous internal investigation had drawn up 181 cases where Nyawo’s use of his company credit card was suspect. These included fast food take-outs, medical bills for another party and first-class plane tickets. The cash involved was more than R100 000.
Transnet said earlier this week that it had uncovered 121 cases of credit abuse among other management. The alleged offenders would appear before a disciplinary panels by the end of this month.
Nyawo’s dismissal represents a major foul-up by Transnet and the ministry. He was given the Portnet position even though the findings of the internal investigation were known. Appointments to the Transnet board are made on Sigcau’s recommendation, and ratified by the Cabinet.
Transnet has tried and failed to keep the credit card scandal in check. It was pushed into acting only after allegations about Nyawo were leaked to the press by other Transnet staff earlier this year.
Much of the bad blood stems from Transnet’s embrace of affirmative action – a policy which has led to an exodus of top white management, and dark mutterings from white unions.
The main criticism is that Transnet’s only criterion for recruiting to top positions is skin colour. Six new black executives have joined the Transnet executive board in the past year.
However, professional recruitment agencies canvassed by the Mail & Guardian this week gave a unanimous thumbs-up for the new board.
They surveyed the curricula vitae of four of the new directors – Saki Macozoma, Gloria Serobe, Joe Ndhlela and Zukile Nomvete.
The agencies were asked to compare the directors’ experience with the requirements they would want if they were looking to fill the Transnet positions.
The only weak link was seen to be Macozoma, whose experience is more as a politician than a businessman.
The agencies, by nature secretive organisations, declined in most cases to be named. One, however, was quite willing to stand up behind the new Transnet board.
“With Serobe in particular I was very impressed,” says Alistair Hubbard of an independent Johannesburg agency Hubbard & Associates. “She is very marketable with a good professional and financial background.”
One agency owner says he would be “more than happy” to take Serobe and Ndhlela on to his books. “Their experience means I could easily place them.”
Another agency says it is unable to detect what Macozoma actually does for Transnet. “He’s got an excellent academic background and he’s obviously a good politician,” one headhunter says. “But I can’t see his portfolio, because he has no functional background.”
Transnet was unable to provide a curriculum vitae for Nyawo.
SAKI MACOZOMA – managing director
The 39-year old MP was appointed to his current position in September. His main business experience stems from a stint as business development manager at South African Breweries.
Macozoma was involved in organising the South African students’ movement in the mid- Seventies. He spent six years on Robben Island and on his release became a prominent member of the United Democratic Front.
He is a member of the African National Congress’s National Executive, and chairman of the parliamentary Portfolio Committee on Communications.
Within Transnet he is responsible for marketing policy and strategy. Macozoma also acts as the parliamentary liaison for the board.
Agency verdict: Experienced politician but weak business background.
GLORIA TOMATOE SEROBE – executive director
Serobe joined the executive in May, taking responsibility for financial policy and strategy, the pension fund and information technology.
She is also executive director of Women Investment Portfolio, which she helped found, and director of the Airports Company.
Armed with a BComm and Masters in Business Administration from Rutgers University in the United States, Serobe worked at Exxon Corporation, Premier Group and Munich Reinsurance Company. She joined Transnet after four years at Standard Corporate and Merchant Bank, where she gained experience in areas such as mergers and acquisitions and privatisation.
Agency verdict: An asset – probably the pick of the bunch.JOE NDHLELA – executive director
Appointed in April, 41-year old Ndhlela’s responsibilities include human resources, training and development, organisational transformation, alongside business divisions PX and Petronet. He also led the initial investigation into the Sipho Nyawo allegations.
Ndhlela joined Transnet in 1989 as labour relations manager and made it to the board as non-executive director in November 1994.
Previous experience includes working for Josiah Parkes, MSD and South African Breweries. He is also managing director of Sentrachem’s Mega Hitec company. Ndhlela is a member of the Black Management Forum and the Institute of Personnel Management.
Agency verdict: Excellent credentials, particularly personnel experience.
ZUKILE NOMVETE – executive director
Responsible for South African Airways (with total operating assets of R5,1-billion) and Transnet’s property business, which includes the Point Waterfront in Durban and Cape Town’s Victoria & Alfred Waterfront. The 38- year-old was appointed in April.
Also currently executive manager at Metrorail, Nomvete’s experience includes a marketing directorship at Denel, and marketing with Thebe Investment. He sits on the board of Sun Air and the Airports Company, and did a course at Wits School of Business Administration.
Nomvete has extensive experience in aviation, obtaining qualifications in Ethiopia and Ireland and flying 3 300 hours as a flight engineer.
Agency verdict: Sound mix of technical and marketing skills.