Siyabonga Gama chalks up his astounding reinstatement at Transnet to his negotiating skills

Appearing before the Commission of Inquiry into State Capture on Thursday, it was hoped former group chief executive Siyabonga Gama might provide clarity on what was behind the inexplicable decision to reinstate him as divisional chief executive of Transnet Freight Rail in 2011. But the man who went on to become Transnet group chief executive in 2016 after a disciplinary committee found him guilty on three charges of misconduct in 2009, remained a closed book. 

This was despite repeated assurances by evidence leader Anton Myburgh SC that he was not being accused of any wrongdoing in this matter as he was not responsible for his reinstatement or later promotion.

Abandoning a “promising career in banking”, Gama said he joined Transnet in 1994 “to contribute my business skills to the growth and development of our country”. He had risen to the position of chief executive of the freight rail division when he was suspended in 2009 on charges of concluding an R800-million locomotive refurbishment contract in a manner counter to the board’s stipulations; irregularities in a R95-million security contract; and attacking colleagues who had raised the issue of misconduct. 

Transnet’s internal processes found him guilty of all three charges and he was fired in 2010. 

Testifying before Justice Zondo in October 2020, labour law expert Christopher Todd, who is a partner at Bowman’s law firm and worked with Transnet on Gama’s disciplinary inquiry, provided fascinating insight into Transnet’s pretzel logic when it came to reinstating Gama.

Not only was Gama parachuted back to his position despite the disciplinary findings against him, the board, chaired by Mafika Mkwanazi at the time, agreed to forking out R10-million in back pay and benefits, as well as paying 75% of the taxable portion of his legal costs related to his disciplinary hearing. This included the costs for his failed high court litigation against individual board members in which Judge Brian Spilg dismissed his application with costs, including the cost of counsel for 11 of 13 of respondents.

Mkwanazi failed to satisfactorily explain the board’s decision when he appeared before Justice Zondo on 19 October, but former Public Enterprises minister Barbara Hogan told the State Capture commission that former president Jacob Zuma was dead set on making sure Gama got the top job at Transnet.

Myburgh led that when Hogan failed to acquiesce to Zuma’s wishes, allowed the disciplinary process against Gama to conclude and oversaw his dismissal in June 2010, she was subsequently fired by the former president just three months later, with Malusi Gigaba appointed as the new Public Enterprises minister. 

“I knew nothing about this,” claimed Gama. “I did not know I had the support of Zuma to be appointed as new chief executive of Transnet or that Hogan fell out of favour in relation… I don’t know if it had anything to do with me.” 

Brian Molefe was appointed group chief executive at Transnet in February 2011 after Gigaba’s appointment.

Myburgh pointed out it was Gigaba who appointed a new board chaired by Mkwanazi which then bent over backwards and made the “indefensible” decision to reinstate Gama after Gigaba suggested the board review Gama’s dismissal.

Put to him that Gigaba as the new minister, acting on Zuma’s instructions, ensured he was reinstated in 2011, Gama said: “I emphatically deny any knowledge of such attempts”. 

Instead, Gama credited his resurrection to his “negotiating skills”. 

He said he referred his dismissal to the bargaining council, seeking to have it declared unfair. After he presented his arguments, Transnet asked that the matter be adjourned for the opportunity to negotiate a settlement, a process which fell to Mkwanazi.

“I did not want to go back to Transnet, I just wanted to see how much money they would give me to go away,” said Gama, straight-faced. 

But, he said Mkwanazi wanted him to come back and turn around the rail freight division which was in financial difficulty. It was his negotiating skills in this arena, he claimed, which resulted in Transnet essentially paying him to return to his job despite the disciplinary findings against him. 

Gama said part of his argument was that during the disciplinary proceedings against him, which he compared to a “Nuremberg trial” — which Justice Zondo ordered him to retract — he was not provided with the allegations against himself, and the loophole was that he theoretically could have sought a condonation for the irregular contracts he had signed off. 

Asked whether he had not lobbied support from bodies such as the ANC Youth League and unions during his suspension, Gama said no, he went home and stayed with his father and planted tomatoes.