/ 19 August 2002

Demoted Spoornet boss in double trouble

The future of Zandile Jakavula, the CEO of Spoornet who last week was found guilty of impropriety involving a property deal, hangs in the balance after he challenged the parastatal’s sanctions against him.

Transnet, Spoornet’s parent company, warned at the weekend that Jakavula would be dismissed if he did not accept the position as general manager of human resources by Thursday. On Thursday the state transport giant confirmed that Jakavula had not accepted its offer.

The company said Jakavula had lodged an appeal against the decision on Wednesday.

Tami Didiza, Transnet’s spokesperson, said on Thursday that Jakavula’s co-accused, Spoornet asset protection head Chain Vilakazi, had accepted his demotion before the deadline.

Jakavula did not report to work on Thursday morning. Didiza said Trans-net “should know by Monday” what its response to Jakavula would be.

In May the Mail & Guardian revealed the details of the property deal that led to the sanctions against Jakavula and Vilakazi.

Jakavula paid R83 000 for the house, though estate agents contacted by the M&G at the time estimated that the property could have been worth R250 000. The riverside home was renovated with Spoornet funds at a cost of R363 000.

Jakavula paid the renovations costs in two instalments — one of R300 000 and the other R65 000 — out of a loan from Transnet’s mortgage scheme.

The M&G also found evidence that Spoornet was advised of the “realistic market price” of the former railway house, but ignored it. In a letter addressed to Spoornet Property Management on April 10 — the day before Jakavula paid his first instalment of the renovation costs — a leading estate agency in Port Alfred valued the house at between R600 000 and R650 000.

Jakavula was suspended on the strength of a preliminary investigation by Gobodo Forensic and Investigative Accounting into the M&G’s exposÃ