South Africa’s opposition Democratic Alliance has called for Transnet CEO Maria Ramos to break her silence surrounding the sudden resignation of Spoornet CEO Dolly Mokgatle. Railway group Spoornet is a subsidiary of government-owned transport group Transnet.
In a statement on Wednesday, DA MP and spokesperson on public enterprises Ian Davidson said that as the shareholders of Transnet, South African citizens deserve an explanation for the departure of Mokgatle, who resigned abruptly on Tuesday after only 18 months at the helm of Spoornet.
“We also need reassurances that the restructuring and revamp of Transnet, and in particular Spoornet, have not been compromised,” said Davidson. “If this departure is part of Ramos’s weeding-out of senior managers she believes are incompetent or ill-equipped to tackle the major challenge of the turnaround, then this would be welcomed.
“Mokgatle was very young and relatively inexperienced to take on the Spoornet behemoth. One could well ask whether a more experienced manager should not have been appointed in the first place.
“However, if this is the case, when is the shake-up going to end? Ramos needs to reassure the people of South Africa, and particularly the business community, that the revamp of Spoornet remains on track. Spoornet remains a major stumbling block to lowering the cost of doing business in South Africa, something President [Thabo] Mbeki undertook to tackle last year.
“Leading an organisation as big as Spoornet under normal circumstances is an enormous task. Undertaking a major revamp at the same time makes it all the more difficult. If speculation that Mokgatle left because of a lack of support is true, this is a serious issue that must urgently be addressed.
“A massive team effort is required, both within Spoornet and Transnet. The entrenched interests of divisions must be put aside if the parastatal is to be turned around successfully.”
Minister of Public Enterprises Alec Erwin said in a statement earlier on Wednesday that he is confident that transport parastatal Transnet will take the necessary steps to ensure that the improvements in the operation of rail utility Spoornet continue and be accelerated. This is despite Mokgatle’s departure.
“The improved performance of Spoornet and its restructuring into an efficient rail transportation provider is a central priority for the economy and needs management that can carry out the task,” the Department of Public Enterprises said.
“The minister would like to thank Mokgatle for the hard work she has done and accepts her decision to resign to take on other challenges in her career,” it said. — I-Net Bridge
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