The board of Transnet has finally decided to let go of its CEO Siyabonga Gama with immediate effect over the weekend.
Gama is implicated in corruption and maladministration, relating to a multi-billion rand locomotive deal which took place in 2012.
Transnet Board member Edward Kieswetter explains the decision to fire Gama, and what this means for the parastatal.
Kieswetter says Gama was fired because the board lost confidence in his ability to lead the parastatal.
Gama will still get his salary for the next six months which is estimated at R3 million - for doing absolutely nothing.
The termination of Mr Gama's contract is in terms of his employment contract which provides for a notice period of six months. So we are simply honouring the contract of employment.— Edward Kieswetter, Transnet Board member
As is practice, when it involves a senior executive, it serves the company's interest best when the individual is no longer around so that we can bring certainty and stability and also revitalise the company and the remaining executives to focus on a very challenging task of running a company.— Edward Kieswetter, Transnet Board member
As the board, we are accountable for ensuring the well-being of the company and take decisions that set the company on its course that is required and can be managed with trust and integrity.— Edward Kieswetter, Transnet Board member
This article first appeared on CapeTalk : Transnet board on why it booted CEO Siyabonga Gama