Transnet: Gama court defeat fails to clear up fog

[Steve Appleton]

Comment from Business Day, page 2, October 8th, 2009 by Michael Bleby:

Gama court defeat fails to clear up Transnet fog

The post of CEO is hardly an attractive one but someone will have to do the job, writes Michael Bleby.

SIYABONGA Gama looks forward to clearing his name. The Transnet Freight Rail CEO — who remains suspended after the high court in Johannesburg yesterday dismissed with costs his attempt to overturn the suspension — is still subject to internal disciplinary processes over allegations he had acted irregularly on two tenders.

“He intends to clear his name. From there he’ll take it one step at a time,” his attorney Themba Langa said yesterday. “We’re confident he’ll be able to prove his innocence. The charges are basically procedural considerations.”

Gama at least has a course of action. What will happen back at Transnet, as the transport state-owned enterprise tries to get back to the process of appointing a CEO, is still unclear. Theoretically, the process should be — as it was before Gama’s legal challenge started — that the board will continue its search and recommend a name to Public Enterprises Minister Barbara Hogan, who will present a recommendation to the Cabinet.

But anything is possible. And no one was doing anything yesterday to add any certainty.

“The minister is applying her mind with regard to the appointment of a CEO at Transnet and will make an announcement in due course,” was all public enterprises spokeswoman Ayanda Shezi said yesterday.

At this stage, there are several possibilities. The entire selection process may start again. This could take months and would allow things to cool down. Hogan could alternatively bring another candidate to the Cabinet for approval.

Choosing a Group CEO to replace Maria Ramos, who left last November to head Absa Bank, has not been an easy process for Transnet. The candidate the board first recommended in February, Pravin Gordhan, pulled out after becoming finance minister.

The board started its search again. In June it recommended a preferred candidate and two alternatives. But last month preferred candidate Sipho Maseko, the head of BP SA, withdrew his candidacy.

“In view of the furore that has apparently been triggered … he would under these circumstances no longer be available as the preferred candidate for the vacant position,” Transnet said then.

One obvious possibility is that Maseko could throw his hat back into the ring. But he is not poking his head above the parapet.

Yesterday Business Day asked for an interview.

“Mr Maseko is not available,” his executive assistant said.

Did that mean he would not even comment?

“Mr Maseko is not available.”

Of course, Maseko and the two — so far unnamed — alternative candidates could be forgiven for losing interest in a job that has become a political cause célèbre in some quarters. In about June the African National Congress’s (ANC’s) deployment committee chose Gama as its preferred candidate.

This was before the disciplinary processes began. However, even after his suspension, Justice Minister and ANC national executive committee member Jeff Radebe spoke out in his favour.

“Some of us will ensure that (Gama) gets the job. It is clear that he has already been judged by the Transnet board. For the board to treat a person who has done so much for Transnet like this is wrong,” said Radebe.

Two weeks later Communications Minister Siphiwe Nyanda — chairman of a company that was the beneficiary of one of Gama’s alleged irregular tenders — also spoke out in favour of Gama.

“He is a young man. Very few people are as capable or as suitable as he is. The challenge is that some people out there are really bent on ensuring that he is destroyed,” Nyanda said.

Within days, President Jacob Zuma told party members to shut up on the matter.

All this can hardly make it an attractive post, but someone will have to take it up.

But Gama’s boat must be seen as sunk. Neither Gama nor his attorney gave any indication of appealing against the high court ruling. Langa even played down the idea that his client held any ambition for the role.

“It’s not his ambition, but he was considered for that. He was interviewed and approved to say he was one of the people who could be considered until Maria (Ramos) came into the picture and scuppered his chances. He’s still happy to serve in the Transnet group in the capacity that he’s asked to serve there.”

Transnet’s acting chairman Chris Everingham made it clear in his responding affidavit to the case that Gama was never a serious contender for the top job, so the board is unlikely to change its view now.

Everingham may well be sitting by the phone just hoping for a call from Maseko.