Johannesburg - Siyabonga Gama has been reinstated to the executive committee of Transnet Limited following a review of his dismissal for certain governance breaches, the transport parastatal's board announced on Wednesday evening.
It said he had returned to the company with effect from today and would be based in the chairperson's office until the new group chief executive finalised the makeup of his executive team.
"The terms of the agreement are confidential. This is in line with Transnet's policies governing employer/employee relations," the board stated.
It said: "Mr Gama's reinstatement is subject to a final written warning, given the fact that Mr Gama was not found guilty of corruption and/or dishonesty. The board is of the view that such an agreement is in the best interest of the company.
"The board believes the settlement brings finality to this matter and would bring to an end the harmful publicity surrounding it.
"As a result of the agreement, Transnet management can focus all its time and efforts in keeping Transnet a world class operation," the Transnet board stated.
"Finally, the board mandated Mr Mafika Mkhwanazi, the chairperson of the board, to handle the Gama matter to its conclusion. This includes facilitating the cultivation and maintenance of cordial relations between Mr Gama, his colleagues in the executive committee and the rest of Transnet's employees.
"Mr Gama has affirmed his support to the management of Transnet under the leadership of the new group chief executive, Mr Brian Molefe," the board said.
The former freight rail chief executive at the parastatal, tipped at one stage to be the group CEO, Gama was found guilty in June last year of a serious breach of governance requirements in relation to two procurement contracts.
He was suspended in 2009 to face charges related to the allocation of a contract to refurbish 50 locomotives to Sibanye Trade Services, which allegedly lacked experience in the renovation of locomotives.
Gama, who had the authority to sign off on contracts worth less than R1m, also allegedly awarded a R19m contract to a security firm with alleged links to former communications minister Siphiwe Nyanda.