Spoornet’s CEO Zandile Jakavula and the company’s executive manager for asset protection, Chain Vilakazi, have been demoted, Transnet said on Thursday.
This follows a disciplinary hearing into allegations -first exposed by the Mail&Guardian in May -that the two acted inappropriately when Jakavula purchased a Spoornet-owned house in Port Alfred in the Eastern Cape.
Transnet group CEO Mafika Mkwanazi said the two had been issued with a final written warning and would also sacrifice 50% of their incentive bonuses for 2001/2002.
He said Jakavula would return the holiday home, on the banks of the Kowie River, to Spoornet at no cost and pay three months interest on the R365 000 borrowed from the rail utility to acquire the house earlier this year.
The salaries of the two have also been fixed for a year, Mkwanazi said.
Jakavula was suspended earlier this year with full pay pending the outcome of the internal inquiry into the allegations.
He was accused of acting inappropriately when he bought the house at a price far less than its market value. Jakavula reportedly paid R83 000 for the house, while estate agents estimated that the property could have been worth R250 000.
The riverside home was reportedly renovated at a cost of R363 000 with Spoornet funds. Jakavula has been offered the job of general manager of human resources while Vilakazi has been demoted to a senior manager position.
Mkwanazi said the two had until August 15 to accept the sanctions in full, otherwise they would be dismissed with immediate effect.
He said Jakavula was found guilty of ”serious misjudgement” in agreeing to let Spoornet employees undertake the renovation and agreeing to defer repayment until the renovations were completed.
The internal probe found that Vilakazi misrepresented information on transfer documents for the property of sale and disregarded the Transnet housing policy ”recklessly”.
He was also found guilty of selling the property for book value and wrongfully arranged the renovation of the property by Spoornet employees at the expense of the company.
”There will be some who think we have been too soft and others who feel we have been too tough,” said Mkwanazi.
”Our goal was to deal with the matter in a firm but fair manner. Although these were dismissible offences, the company took into account a number of mitigating factors.”
Transnet chair Bongani Khumalo said the sanctions would send a strong signal that ”inappropriate and unprincipled behaviour” at Transnet carried a severe penalty.
”Transnet employees should know that we demand impeccable standards of behaviour… This applies especially to senior executives who are expected to set an example of good judgement, ethical business conduct, diligence and accountability…,” said Khumalo.
However, he said he was ”saddened” to see the careers of two ”very fine” executives tarnished. Spoornet’s acting CEO, Tshidi Nyama, will continue in the position until further notice. – Sapa