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Ramos 'heir' faces tender charges

Aug 31 2009 07:40 James-Brent Styan

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Johannesburg - Transnet's strongest candidate to succeed Maria Ramos as chief executive is currently embroiled in a disciplinary hearing.

The latest charge against Siyabonga Gama apparently relates to fraud in the awarding of a tender to buy 212 locomotives.

Transnet cancelled this tender after certain anomalies came to light.

Gama is the chief executive of Transnet Freight Rail, the parastatal's most profitable and largest division.

The contract for the 212 locomotives was worth R6.5bn-odd and was awarded at the end of last year to a consortium of companies known as Electro-Motive Sibanye.

The contract was however cancelled in February this year after an investigation by auditing firm Ernst & Young discovered a series of irregularities in awarding the tender.

Electro-Motive Sibanye went to court to obtain an interdict against the cancellation, but this was not granted.

According to court documents in Sake24's possession the anomalies include the fact that Electro-Motive Sibanye received the tender documents two weeks before the tender was issued.

Electro-Motive Sibanye also received a higher score than it was entitled to for its black empowerment status.

"If the correct BEE score had been awarded to the company it would never have been identified as the preferred bidder," declared Transnet in the court documents.

In February this year fingers were already being pointed at Gama, but Transnet strongly denied the allegations and said "the investigation has revealed no malpractices on Gama's part".

As head of Transnet Freight Rail, Gama was chairman of the procurement board.

This board's job is to review all tenders before recommendations are made to the Transnet board. On Friday Transnet spokesperson John Dludlu admitted that disciplinary steps are being taken against Gama.

Ramos left Transnet at the end of February to take over as chief executive of Absa.

Gama has since been in the foreground as Ramos' possible successor, especially after Chris Wells, the acting chief executive, indicated that he was not available for the position.

On Friday Dludlu declined to comment on the process under way against Gama.

"This is an internal matter that the company is dealing with." Ayanda Shezi, spokesperson for the Department of Public Enterprises, Transnet's shareholder, says it is still too early to speculate on steps that might be taken against Gama.

"The board [of Transnet] will first finish the disciplinary hearing and then report the result to the shareholder."

Transnet has since issued a new tender for 100 new locomotives.

- Sake24.com

For more business news in Afrikaans, go to Sake24.com.

 
 
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