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Former Transnet board chairman Mafika Mkhwanazi said on Monday that when he negotiated and agreed to pay for the Siyabonga Gama deal, he did not know how much it would cost Transnet.
A screenshot of the former chairman of the Transnet board of directors, Mafika Mkhwanazi, at the state capture commission on Friday, October 16, 2020. Image: SABC Digital News / Youtube
JOHANNESBURG – Former Transnet board chairman Mafika Mkhwanazi said on Monday that when he negotiated and agreed to pay for the Siyabonga Gama deal, he did not know how much it would cost Transnet.
Gama was reinstated as the group’s CEO and paid at least R17 million in back wages, benefits and legal costs even though he had been found guilty of misconduct.
– READ: Mkhwanazi admits sabotaging legal processes to ensure Gama returns as CEO of Transnet
But Mkhwanazi denied that it was because then-Minister Malusi Gigaba issued instructions for that arrangement and reinstatement.
– READ ALSO: The former president of the board of directors of Transnet implicates Gigaba in the reinstallation of Gama
He has been testifying before the state arrest commission.
The chairman of the state’s capture commission, Supreme Court Vice Chairman Raymond Zondo, said: “When paying someone 75%, you have to have an idea of what the total cost would be and what the 75% would be.
But Mkhwanazi said: “I didn’t have a complete picture.”
– READ ALSO: Mkhwanazi: Irregular spending on Transnet was common during my tenure
Mkhwanazi is still struggling to justify decisions made during his tenure, including paying Gama’s money that he was fired, detailed by trial leader, attorney Anton Myburg.
Myburg asked: “The first was for R1 million, the second R1.7 million and the third for R1.4 million. Therefore, if you add to the R13 million in incentives and back pay benefits, you were also paid R4 million in costs. I see you’re a little stunned?
Mkhwanazi said, “Yes, I am. I would like to comment that I was under the impression that the legal costs of the so-called Gama were much lower than this. “
Mkhwanazi has admitted that it made no sense that, although Gama was also found guilty of procurement irregularities and of discrediting other Transnet executives, the board decided to reinstall him as CEO of the group.
WATCH LIVE: State Capture Inquiry, October 19, 2020 Part 2
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