Transnet statement on Mr. Gama

The Board wishes to announce that Mr. Siyabonga Gama has been reinstated to the executive committee of Transnet Limited following a review of his dismissal for certain governance breaches. He returns to the company with effect from 23 February 2011 and will be based in the chairman's office until the new group chief executive finalises the makeup of his executive team.

The terms of the agreement are confidential. This is in line with Transnet's policies governing employer/employee relations.

Mr Gama's reinstatement is subject to a final written warning given the fact that Mr Gama was not found guilty of corruption and/or dishonesty. The Board is of the view that such an agreement is in the best interest of the company.

The Board believes the settlement brings finality to this matter and would bring to an end the harmful publicity surrounding it.

As a result of the agreement, Transnet management can focus all its time and efforts in keeping Transnet a world class operation.

Finally, the Board mandated Mr Mafika Mkhwanazi, the chairman of the Board, to handle the Gama matter to its conclusion. This includes facilitating the cultivation and maintenance of cordial relations between Mr. Gama, his colleagues in the executive committee and the rest of Transnet's employees

Finally, the Board mandated Mr Mafika Mkwanazi to handle Mr Gama's matter to its conclusion. This includes facilitating the cultivation of cordial relations between Mr. Gama, his colleagues in the executive committee and the rest of Transnet's employees.

Mr Gama has affirmed his support to the management of Transnet under the leadership of the new group chief executive, Mr Brian Molefe.

Statement issued on behalf of the chairman of the Transnet Board of Directors, February 23 2011

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