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Testifying at the Zondo Commission has been Mafika Mkwanazi, an experienced engineer who has two degrees, one in Applied Mathematics and a Science in Electrical Engineering. Former Transnet chairman Mkwanazi has a stellar career, having served on the boards of public and private companies such as Nedbank, Eskom and Stefanutti Stocks. His stint at Transnet, however, has drawn criticism of his reputation, as he was unable to clarify why he authorized a R17m payment to former Transnet CEO Siyabonga Gama. The dubious transaction occurred in 2011 after Gama was reinstated. He had been fired the previous year when a disciplinary investigation found him guilty of three misconduct cases. Upon his return to Transnet, he was appointed interim CEO of the group and became permanent in April 2016. According to the evidence heard in the Zondo Commission, Mkwanazi was instrumental in ensuring that Gama received the late payment and 75% of the costs legal in a court order that it instituted. against Transnet. – Bernice Maune.
Supreme Court Vice President Ray Zondo could not contain how appalled he was that former Transnet Chairman Mafika Mkwanazi was struggling to explain why he approved multiple payments to former Transnet CEO Siyabonga Gama.
During the state’s capture investigation, Zondo, visibly angry, admonished Mkwanazi for the insanity, adding that the commission would likely consult with President Cyril Ramaphosa to recover the 17 million rand that Gama was basically paid for nothing.
Gama left Transet in 2009 in a cloud. He was found guilty of awarding a security contract to former communications minister Simphiwe Nyanda’s company, GNS worth R19 million a year. The two were golf friends and apparently concluded the deal casually and without following the Transnet acquisition process. On the contract awarded to Nyanda, Gama said that he had simply signed the deal without reading the fine print.
“In effect, you and your body said that we want a CEO of a large Transnet division who signs documents without reading them and therefore puts Transnet in serious financial risk as CEO that we want to be reinstated.
Do you agree that this is the effect of your decision and your meeting? “
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Zondo also questioned the reasons why Mkwanazi reversed a legal ruling that Gama should pay Transnet R426,000 for the state-owned company’s legal fees. Gama had lost a case in which he tried to appeal his dismissal and was told to pay Transnet’s legal bills.
“Why did you interfere with a court order issued by a judge in a separate litigation in which Gama had lost and said that he does not have to pay those costs? Transnet was not at risk regarding those costs, that was finalized. Why did you do that? Zondo asked.
In response, Mkwanazi said that Gama had submitted “documents and presentations” to show that he had no right to return the money. He also denied having given his sole approval and signed the payment. However, a former Transnet executive told Zondo last week that it was Mkwanazi who insisted that the payment be made.
The board must pay
Upon learning that Mkwanazi did not understand the magnitude of his decision to approve late payments and benefits in the amount of R13m and other R4m for legal costs for Gama, Zondo said the commission could recommend that the board should repay that amount. .
“Would you say that there would be something unfair if, in the end, the commission recommended to the president that steps be taken to recover from the board members who supported this agreement this money that, you and I agree, should not have been paid to the Mr. Gama? Zondo asked.
Mkwanazi agreed that his board is responsible for the R17m and should return it.
Gigaba and Zuma show their hand
The commission has also heard evidence from Mkwanazi about how former Minister of Public Enterprises Malusi Gigaba had a conversation with him about the possibility of submitting offers to black suppliers. Gigaba reportedly said it was concerned that Transnet was not diverse in its acquisition processes.
Later, Gigaba would commission Mkwanazi to review Gama’s dismissal as too severe. The ANC member NEC also said that white executives had gotten far worse and that Gama should receive a reprieve.
Transnet’s former group legal services manager, advocate Siyabulela Mapoma, told Zondo that Mkwanazi confided in her that she had instructions to bring Gama back on board. The order apparently came from the presidency and it is understood that former President Jacob Zuma was behind it.
Gupta history
Gama was implicated by his former driver, who testified at the Zondo commission in August. The driver, who is under witness protection and his identity hidden, told Zondo that his boss would visit Gupta’s residence in Saxonwold to receive briefcases full of cash. It is said that the money was in exchange for contracts that the powerful family wanted to receive from Transnet.
Check out Mafika Mkwanazi’s testimonial below.
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