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Cape Town - Transnet will request that its suspended freight rail CEO Siyabonga Gama be fired after he was found guilty of a serious breach of governance requirements, Minister of Public Enterprises Barbara Hogan said on Monday.
In reply to a parliamentary question on what sanction Gama would face for the offence, Hogan also confirmed she would ask if the Gama inquiry showed that Transnet's board had failed to comply with the Public Finance Management Act (PMFA).
In a 200-page finding, Transnet's internal disciplinary committee found that there had been an irretrievable breakdown in Gama's relationship with Transnet. He was also found guilty of charges related to two contracts.
One of them was a R19m contract to a security firm with links to Communications Minister Siphiwe Nyanda.
Gama, who has been receiving his full salary since he was suspended last year, said he intends fighting the finding. But Hogan said: "Transnet will motivate for dismissal as the appropriate sanction; however, that issue will be finally decided by the respective appointed presiding officers."
Hogan said that if procurement legislation had been flouted during the awarding of the contracts Gama was suspended over and found guilty of, this would be detailed in Transnet's annual report.
"The department of public enterprises will then raise those concerns with the board of the public entity," said Hogan. She stressed that the PMFA holds the board responsible for ensuring that Transnet complies with legislation.
According to the PFMA, the board may be fined or imprisoned if it is found that it did not meet its responsibilities.
- Fin24.com
