Transnet Freight Rail chief executive Siyabonga Gama has emerged as a frontrunner to head the country’s largest and crucial part of the freight logistics chain after the incumbent Brain Molefe moved to Eskom last week.
Sources within Transnet say Gama, who has had a very temperamental relationship with the company, has the requisite credentials and political backing to head the transport parastatal.
“Siya (Gama) knows Transnet in and out and has executed his responsibilities with flying colours in every department he has worked for in the company,” one source said.
“He is also highly qualified and runs one of the most crucial parts of the company.”
Gama was suspended in 2009 on charges related to two procurement contracts he allegedly authorised.
The company fired him in June 2010 for certain breaches of governance.
One of the contracts was awarded to Nyanda Security Advisory Services, which is now known as Abalozi Risk Advisory Services, and was worth R19 million. The company was headed by former communications minister Siphiwe Nyanda.
Transnet said at the time that Gama had no authority to sign off on contracts of more than R10m. The second contract was awarded to Sibanye Trade Services, which allegedly lacked experience to do the job.
However, in April 2011, Transnet said Gama was found not guilty of corruption or dishonesty, so he should not have been dismissed, but only issued with a final letter of warning.
“It is just a matter of time before Gama is confirmed as the new chief executive because Transnet would not want to lose someone as influential as him,” another source added.
“He would not be a surprise candidate and in fact, most people would accept his appointment as a necessary step and as a sign of continuity in the company.”
Public Enterprises Minster Lynne Brown is expected to announce Transnet’s new chief executive today.
Molefe’s new post
Molefe’s move to Eskom is all but permanent after Brown indicated on Friday that he was expected to steer the troubled utility for at least one year.
This is despite the ongoing Commission for Conciliation, Mediation and Arbitration (CCMA) hearing on suspended chief executive Tshediso Matona’s challenge that his suspension by the board last month was unprocedural and cast a negative view on his integrity.
An ANC national executive committee (NEC) member who spoke to Business Report on condition of anonymity this weekend said the ruling party backed Molefe’s appointment to the helm of Eskom because he had extensive experience in running state-owned firms.
“With Brian you get a combination of arrogance and an astute businessman who cannot be pushed around,” the NEC member said.
“And that is what you need now at Eskom, someone who can turn the power utility on its head but who also has a proven record in injecting new life to ailing companies.”
More on Gama
Gama, who joined Transnet in 1994 and has served in various capacities within the company, is a prominent member of the ANC. He is known to fraternise easily with some of the ruling party’s top leaders.
Prior to joining Transnet, he held various management positions at Standard Bank and JP Morgan (New York).
He has quietly worked his way up to the chief executive of Transnet Freight Rail after managing the ports on behalf of the company. In 2008 Gama was also voted the National Business Leader of the Year.
“Gama may not be the kind of on your-face leader,” the Transnet source said. “But he sure knows what he is doing and he is very good at it.”
Last year Gama said Transnet’s ramp up phase would move ahead in parallel with a longer-term solution to increase volumes to between 40 million and 80 million tons from 2021 onwards.
He said the proposed heavy-haul project was still being studied and was unlikely to be included in the group’s 2015/16 business plan, which was currently being finalised by Transnet Capital Projects.
Gama said memorandums of understanding had been signed with a number of coal producers in the Waterberg and that it had already signed commitments totalling 16 million tons, some of which would come on stream by June next year.
At the moment, Gama heads Transnet’s biggest unit and one of its most ambitious programmes of building 233 locomotives in the country.