South African state-owned transport utility Transnet said on Tuesday it had suspended the head of its rail group Spoornet.
Spoornet CEO Zandile Jakavula was suspended after a probe into accusations that he may have acted inappropriately by buying a former Spoornet-owned house in the small seaside resort of Port Alfred, Spoornet’s parent company Transnet said.
”Zandile Jakavula has been suspended with full pay pending an internal inquiry that he might have acted inappropriately in purchasing a former Spoornet-owned house in Port Alfred for his personal use,” Transnet said in a statement.
Jakavula, who is credited with helping restructure Spoornet, was not immediately available for comment, but was quoted by the Business Day newspaper as saying he hoped the investigation would prove his innocence.
The paper said that among the allegations was one that Jakavula paid below market value for the house.
The news comes at a time when South Africa is working to entrench stricter corporate governance, particularly in state-run companies ahead of the government’s plans to privatise a range of state functions.
Transnet said an acting CEO would be appointed soon. – Reuters