The Congress of South African Trade Unions views with serious concern the reappointment of Siyabonga Gama to the executive committee of Transnet, and in particular the lack of consultation with COSATU and SATAWU over the appointment.
The federation has already expressed its anger at the growing trend of lack of consultation by the Ministers not only with COSATU but even the directly affected unions, as in these other following cases:
1. Appointment of the SAA Board and CEO
2. Appointment of the chairperson of Telkom
3. Imminent appointment of the CEO of Telkom
The decision to reinstate Gama followed a review of his dismissal as chief executive of Transnet Freight Rail last June after an independent arbiter found him guilty of "negligence" over the award of two contracts, including an R18.9-million security contract awarded to GNS, part-owned by former communications minister Siphiwe Nyanda and the allocation of a contract to refurbish 50 locomotives to Sibanye Trade Services, which allegedly lacked experience in the renovation of locomotives.
Gama's case was the subject of an appeal in the Transnet bargaining council at the time the new board, under its new chairman Mafika Mkwanazi, came into office. The process was then suspended to allow the parties to talk and a settlement was reached.
"The sanction of a dismissal," announced the Board, "was too harsh and therefore the Board considered a final written warning to be more appropriate", on the basis that he has not been found guilty of corruption and/or dishonesty. Now he has been reinstated, subject only to a final written warning.
COSATU however remains concerned that the report and findings of the disciplinary committee into his conduct did find him to have been negligent in his oversight of the contracts the charges referred to. Transnet's internal audit found that before the open, competitive tender could be awarded, GNS submitted a proposal to the two members of Gama's staff, saying it could provide this service. Within days of receiving the GNS documentation, the open tender process was suspended and finally cancelled.
Transnet initiated a closed or "confined" tender process, which allows for just one company to submit a tender on the basis of urgency or if that company has a unique offering. The problems with this, uncovered by the internal audit, and submitted as evidence to Gama's disciplinary inquiry, included that:
1. No urgency for the confined contract could be established and that the security service in question was being carried out by the existing service provider and cable theft was declining, in contradiction of an internal motivation that claimed it was increasing.
2. The investigation found GNS was "a shell company". It had no employees and its only assets were a few vehicles. Furthermore, no due diligence was carried out to establish whether it could provide the service.
3. While the existing service provider had policed cable theft for a contract amount of R500 000 a month, the GNS contract was for R1, 5m.
Gama was the senior manager with the responsibility to sign the contract. However, in the case of a confined contract, he had the authority to sign for a maximum of R10m, while the GNS contract totalled R18m.
So, whether or not he was party to the manipulations of his staff, Gama exceeded his authority in signing the contract. He argues that he had "absent-mindedly" signed it without reading it, misunderstanding its nature (as a confined contract) and the sum of money involved, and that his signature was an oversight.
The disciplinary committee however found Gama guilty of negligence for this oversight and a second - the contract involving the procurement of locomotives - where he signed a contract which included a clause that was against the express interests of the board.
Transnet claims that this finding of "negligence" justifies its decision that dismissal was too harsh. But this ignores the committee's evidence of "the highly suspicious circumstances" around the GNS contract and that Gama's cursory attention to important documents was not appropriate for a person of his seniority.
COSATU believes that Gama's reinstatement, despite this evidence of negligence and mismanagement, is in conflict with the government's commitment to root out incompetence in the public service and state-owned enterprises, and calls on the Transnet Board to reverse their decision.
This decision will feed into the perception among many workers that there are people in South Africa who are untouchable because of their political connections. In contrast to workers who appeal to Board Chairmen against unfair treatment and are routinely ignored, certain well connected individuals seem to be able to escape justice and move into well-paid senior positions.
This perception is reinforced by the reports of Schabir Shaik, who was released from prison on medical grounds and said to be terminally ill, yet is seen playing golf and allegedly assaulting people. COSATU welcomes his re-arrest and demands that justice must be applied without any fear or favour.
Statement issued by Patrick Craven, COSATU national spokesperson, March 15 2011
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