/ 7 October 2009

Transnet to continue with action against Gama

Transnet will continue with a disciplinary hearing against its Freight Rail’s chief executive Siyabonga Gama, a spokesperson said on Wednesday.

Earlier, Gama’s application to have his suspension lifted was dismissed with costs by the High Court in Johannesburg.

”The disciplinary hearing … will now take its course with an independent chairman,” Transnet spokesperson John Dludlu said in a statement.

”We are pleased that this public episode, which has been painful and disruptive to the business, is now behind us,” he added.

Gama’s suspension followed allegations of procurement irregularities against him.

These included Gama’s alleged allocation of a contract to Sibanye Trade Services to refurbish 50 locomotives though the company lacked experience to do so.

Gama, who only had authority to sign off on contracts worth less than R10-million, also allegedly awarded a R19-million contract to a security firm with alleged links to Communications Minister Siphiwe Nyanda.

He was suspended pending the outcome of an internal disciplinary hearing.

Gama was one of five candidates in the running for Transnet’s top post of group chief executive. — Sapa