NATIONAL NEWS - The chairperson of the Transnet board Popo Molefe announced yesterday that former CEO Brian Molefe and former CFO Anoj Singh, along with other former top executives, has been issued with a summons.
The summons is an effort by the entity’s board to recover an estimated R1.3 billion allegedly looted during the former CEO (Brian Molefe) and CFO’s tenure.
Former Transnet chief executive Siyabonga Gama, who succeeded Molefe, is among those who have been summoned.
Gama was fired as group chief executive officer of Transnet last year after he failed to provide the board with reasons why he should not be fired. The parastatal said it had lost trust and confidence in his ability to lead it.
On September 27, 2018, Gama was given 10 days to submit written representations as to why he should not be fired, but Gama approached the Labour Court in Johannesburg to interdict the intention to dismiss him. The reasons supplied to Gama were alleged serious violations of his financial, procurement, and fiduciary duties.
Two law firms, Werksmans and MNS, implicated Gama in alleged breaches of procurement rules on a R54 billion contract to buy 1,064 new locomotives.
The Sowetan reports that R618 million of the R700 million advanced payment of the contract has been recovered by Transnet and that the entity’s acting CFO, Mohammed Mahomedy, is now working towards recovering the VAT that was paid.
Popo Molefe made the announcement about the summons during a presentation on Thursday on the board’s progress report on its efforts to stabilise the entity.
