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Former chairman of the Transnet board of directors, Mafika Mkwanazi, disputed the claim that he said an order to reinstate Siyabonga Gama came from “higher up” than the public company ministry. The former head of Transnet’s legal group, Siyabulela Mapoma, testified that he “assumed” that by “higher”, Mkwanazi meant former president Jacob Zuma. Former Public Business Minister Barbara Hogan said Zuma wanted Gama as the Group’s CEO.
Former Transnet board chairman Mafika Mkwanazi left Supreme Court Vice President Raymond Zondo stunned by the board’s decision to reinstate executive Siyabonga Gama in 2011.
Mkwanazi made a virtual appearance via video link on the State Capture Inquiry on Friday, October 16, 2020.
His testimony marked the third consecutive day of summary evidence on allegations of state capture, corruption and fraud on Transnet.
Test leader and defender Anton Myburgh SC focused on Transnet’s controversial and irrational decision to reinstate Gama.
Gama returned to Transnet with a clean record, despite being convicted during an internal disciplinary investigation and summarily fired in 2011.
On Wednesday October 14, 2020, the former head of Transnet’s legal group, defender Siyabulela Mapoma, said that Mkwanazi named the source of the instruction to reinstate Gama.
“Although I did not consider it my place to ask who had instructed him, I assumed it must have been former President Zuma,” Mapoma said.
“Initially he indicated that this came from the ministry and then he indicated that this came from higher up and this is the word he used: ‘higher’. But the president was not mentioned. “
Mapoma’s inference aligned with previous evidence on Gama’s prodigal return. Former Public Business Minister Barbara Hogan testified that Zuma was hell-bent on Gama’s return and his promotion to Group CEO.
Mkwanazi completely undermined Mapoma’s claim and his alleged allusion to Zuma.
“It’s your guess,” he said. “I don’t name releasing, particularly [former] President Zuma. I do not name that person because I have never met him, etc. “
Myburgh asked, “How is it possible that Mr. Mapoma was so wrong about this?”
Mkwanazi’s response offered little information.
“He really was completely wrong. By the way, he was close to Mr. Mapoma. Let me admit that, ”he said.
Zondo then asked, “Are there any cabinet members who influenced the deal?”
Mkwanazi claimed that he had no personal knowledge of any Cabinet members influencing the princely deal Transnet awarded Gama, which included R10 million in late payments.
Myburgh cited correspondence from the investigation team asking Mkwanazi if any Cabinet members played a role, either direct or indirect, in finalizing the Gama affair.
In light of this, Mkwanazi made a lukewarm mention of former minister of public companies Malusi Gigaba, who apparently played a limited role. Gigaba tasked Mkwanazi with reviewing Gama’s suspension and firing, noting that “white Transnet executives” had been spared lightly for similar minor offenses.
“Can you review the matter?” Mkwanazi reported that Gigaba had told him.
The day’s session was tricky, sometimes due to a bad video link connection and other times due to inconsistent testing.
Mkwanazi’s input on key issues was puzzling to both the president and the leader of the evidence.
Zondo highlighted his “serious difficulty” in understanding how the Transnet board not only reinstalled Gama, but paved the way for his promotion to CEO of the Group.
An internal disciplinary process found Gama guilty of all the charges brought against him. Gama’s three main positions concerned: a locomotive renovation contract; a security services contract; and his attack on his colleagues.
Gama signed a contract for the renovation of 50 locomotives with terms totally opposite to the requirements formally stipulated by the Transnet board.
The board insisted that the upgraded locomotives should be reassembled by a division of Transnet. However, the contract that Gama authorized delivered this work to an external company (in which the Transnet project manager had a stake).
Transnet abandoned an open tender process for security services. Soon after, he received an unsolicited offer from General Nyanda Security Advisory Services (GNS).
Gama signed the contract awarded to GNS, in which then-communications minister Siphiwe Nyanda had a 50% stake. During disciplinary proceedings at Transnet, Gama concealed his proximity to Nyanda.
However, phone records showed that Gama and Nyanda spoke regularly before the end of the security services contract.
Faced with this contradiction, Gama tried to explain his lie: he and Nyanda were golf buddies, and that Gama didn’t want too much to become of the association.
During the disciplinary investigation, Gama made an alarming admission: he did not read all the relevant documentation related to the security services contract with GNS, before signing.
This was an especially serious admission. When he signed the contract, Gama was the CEO of TFR. Because Hogan claimed he wanted Zuma, he would rise to the rank of Group CEO.
Labor law expert and law firm partner Christopher Todd was one of Transnet’s top advisers regarding the Gama saga. He testified on Thursday, October 15, 2020.
On Thursday he testified: “This was always evident, even in Mr. Gama’s own version: ‘I am the CEO of TFR, I sign a security contract for R18 million and you can put anything in front of me, you can say anything and put anything in front of me ‘… “
“And you sign,” Zondo added.
Time and again, during the Wednesday through Friday sessions, Zondo and Myburgh were puzzled as to the logic behind the board’s decision to reinstate Gama while there were serious marks against him.
“I have serious difficulties with the idea of the board reinstating someone who had held such an important position in the organization, and who had been convicted of such serious misconduct, and was not contesting those findings,” Zondo said.
His voice rose and he continued: “I am looking at this committee and I am saying that this committee is not only thinking about reinstating Mr. Gama, but actually thinking about giving him a platform to go and take a uniform seat. higher position despite failures in their conduct! How is that possible? “
Mkwanazi’s input raised necessary questions about the board’s reasoning and his own conduct as chairman in relation to Gama’s recovery.
He will continue his testimony at 9 am on Monday, October 19, 2020. DM
