DURBAN - On Monday Minister of Public Enterprise Pravin Gordhan announced an interim Transnet board after he fired three of the board's remaining members.
Now Popo Molefe will be the head of the Transnet board.
Let's take a closer look at Transnet
Transnet is a state-owned enterprise that was launched on April 1st, 1990. The enterprise is made up of five divisions including Transnet freight rail, Transnet rail engineering, Transnet national ports authority, Transnet port terminals and Transnet pipeline.
According to the 2017 financial results for Transnet, the enterprises' reviewed revenue growth increased by 5,3% to R65,5 billion. They also managed to raise R17 billion in funding without any government guarantees.
Last month the Constitutional Court ruled that they pay approximately R80 billion to Transnet pensioners. 6 000 workers took the freight, logistics and rail company to court in 2013 because of pensioner payouts.
This week reports surfaced that former Transnet boss Brian Molefe lied to the Transnet to increase the 1064 locomotive tender. The tender in question which was worth billions of rands was awarded to businesses that are connected to the Guptas.
In January, former Public Enterprises Minister Lynne Brown warned SOES' board members that they would be rotated if the did not perform according to Fin 24. Brown made the statement at a Parliament portfolio meeting on public enterprises. The Transnet board was also included in the warning.
Just a few months later the chairperson of the Transnet board Linda Mabaso resigned. Vusi Nkonyane and Yasmin Forbes who were non-executive directors also resigned.
The new members of the Transnet board are Louis von Zeuner, Ramasela Ganda, Ursula Fikelepi, Edward Kieswetter and Dimakatso Matshoga.
As mentioned above Popo Molefe will be the head of the new Transnet board. Molefe is a South African politician and formerly the Premier of the North West.
According to Bloomberg, Molefe can be linked to 20 boards in 3 different organisations over 7 various industries. Molefe is also the Chairperson of the Chairman of the Passenger Rail Services of South Africa (Prasa).
This means that Molefe serves two SOE's Prasa and Transnet.
- BUSINESS REPORT ONLINE