Recently fired Transnet CEO Siyabonga Gama will still receive his salary for the next six months despite not having to report for duty.
This was confirmed by Transnet board member Edward Kieswetter during an interview with eNCA’s Shahan Ramkissoon. Kieswetter confirmed that although Gama’s contract had effectively been terminated on Monday, the former CEO would still receive a handsome paycheck in order to facilitate a smooth operational transition.
Former Transnet CEO implicated in dodgy tender deal
The embattled state owned enterprise has been under both public and political scrutiny for quite some time. Recently, Transnet’s failings were cast into the spotlight following annual financial reports indicating irregular expenditure of R8.1 billion.
Transnet has also been caught up in controversy due to its dubious conduct with regards to a R500 million pension fund, which the Democratic Alliance (DA) claims has been looted during under the tenure of former president Jacob Zuma and disgraced former executive Brian Molefe.
Add to that the biggest scandal involving Transnet’s R25 billion tender scam with China South Rail (CSR) in 2013, facilitated by the infamous Gupta family, and it’s clear to see that the parastatal is plagued by a nepotistic rot.
Controversy surrounding Transnet and its incompetence continues to grow due to the recent sacking of Gama. During his final days at the parastatal, infighting with company chairperson Popo Molefe reached a fever pitch.
Siyabonga Gama’s multimillion-rand severance check
Kieswetter explained that Gama’s contract with the company had been terminated because the Transnet board had lost confidence in his ability to lead the state owned enterprise.
Yet, while most fired employees only receive a boot out of the company offices, Gama is due to receive a R3 million severance package. Kieswetter explained the exorbitant firing fee:
“As is normally the practice with senior executives, it serves the interests of the company best that that individual be removed and no longer present, so that we can return the company to stability.
For that reason, the individual is no longer required to report for duty. The termination comes into effect today, but with the payment in lieu of six months’ notice.
Mr Gama’s remuneration is in public domain. Yes, it’s a few million.”
Despite being implicated in corruption and maladministration within Transnet, through a series of investigations, Gama’s removal from the company has been downplayed by board members.
By: The South African