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By Baldwin Ndaba 
5h ago
Johannesburg – Former Transnet CEO Siyabonga Gama faces the possibility of running dry after the Commission, which is investigating State Capture, indicated that it could issue a decision for Gama to reimburse R13 million to the parastatal for his alleged illegal reinstatement in 2011.
This was the indication given by the president of the Commission, the vice president of the Supreme Court, Raymond Zondo, after the former chairman of the board of Transnet, Mafika Mkhwanazi, admitted that his board was wrong in appointing Gama with all the benefits for his position in 2011.
Mkhwanazi agreed with Zondo that a measure to recover the funds would be an appropriate measure to reimburse taxpayers and the state.
The former board chairman’s concession followed extensive questioning about his role in the reinstatement decision, including allegations that the board was forced to do so by former public companies minister Malusi Gigaba; denied the accusations.
Earlier, the Commission heard how Gama was paid R13 million, including benefits, despite being convicted of three counts of gross negligence by a senior executive.
The transport company also paid Gama 4 million rand for legal fees during his disciplinary hearing, which found him guilty and found him unfit for the post.
Despite the disciplinary ruling and legal advice from Christopher Todd of Bowmans, the Transnet Board under Mkhwanazi reinstated Gama in his original position, paid his R2.5m salary, including his short and long-term benefits, since his dismissal on June 30, 2010 until reinstated on February 23, 2011.
The state Capture Commission heard on Monday that the total amount paid to Gama was R13 million.
These concessions were made by Mkhwanazi during his second appearance before the commission chaired by Vice President of the Supreme Court Raymond Zondo.
During his testimony, Mkhwanazi denied that the board acted on Gigaba’s instructions.
He said Gigaba just asked the board to review Gama’s firing. Despite denying any influence from Gigaba, Mkhwanazi nevertheless admitted that his board never fulfilled its duty to review the dismissal.
“We made that decision based on a document that was presented to us. It was weak legal advice, ”Mkhwanazi said.
He also admitted that it was wrong for the Transnet board to reinstate Gama, saying the crimes Gama was found guilty of did not justify his reinstatement.
“In retrospect, it was a mistake that we reinstated Mr. Gama, especially for signing acquisition documents to illegally appoint a GNS security company to do business with Transnet. Mr. Gama also admitted to Mr. Christopher Todd that the GNS contract was wrong.
“Mr. Gama admitted that there were loopholes and loopholes in the contract. He also admitted that the GNS contract was a complete fraud, ”said Mkhwanazi.
Political Bureau
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