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Crunch time for Hogan over Gama

Public Enterprises Minister Barbara Hogan faces crunch time tomorrow after being called to appear before Parliament to explain her handling of the succession process at Transnet and the suspension of Siyabonga Gama, CEO of the Transnet Freight Rail (TFR) division.
Crunch time for Hogan over Gama

Vytjie Mentor, chairwoman of the public enterprises committee, confirmed yesterday, 13 September 2009, that Hogan was due to appear before Parliament tomorrow, saying the minister would talk about the appointment of the group Transnet CEO and other “problems around this”.

The post has been vacant since Maria Ramos — who served a three-month notice from November last year — left the transport parastatal in February for Absa.

With the spotlight now aimed at Hogan, it is unclear whether she would fall in line with Luthuli House's drive to see Gama take the group CEO mantle.

When Gama was suspended on 1 September, Hogan said the Transnet board would run the disciplinary process and “inform the shareholder”, the government, of the “outcomes and any decisions to be taken”.

But Justice Minister Jeff Radebe and Communications Minister Siphiwe Nyanda — Hogan's counterparts — have openly questioned Gama's suspension, and the African National Congress has thrown its weight behind Gama, pitting itself against the Transnet board.

The board's preferred candidate, BP Africa CEO Sipho Maseko, has withdrawn his nomination, citing the furore surrounding the disciplinary action against Gama as a reason.

Mentor said the problems at Transnet were “running deep” and were “costing us a lot”. Transnet still had an acting chairman and an acting chief financial officer.

Since Gama was suspended two weeks ago, TFR has had no interim CEO. She said that the “ramifications” of delays in making these appointments were being felt, citing reports suggesting there was a go-slow at TFR because of the leadership issue.

The succession furore at Transnet, she said, could have a ripple effect on the appointment of a CEO at South African Airways. “We want these issues resolved urgently,” Mentor said.

Meanwhile, Gama will on Thursday launch an urgent interdict against Transnet to have his suspension reversed and the disciplinary proceedings dropped.

Transnet spokesman John Dludlu, said yesterday the group welcomed the opportunity to have the “matter put to rest in a court of law”.

He said Transnet believed “that due process must be allowed to take its course and that Mr Gama ought to be afforded the full opportunity to respond to the allegations against him in a duly constituted process”.

Source: Business Day

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