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Logistics & Transport New business South Africa

Hogan seeks quick Transnet solution

CAPE TOWN: Public Enterprises Minister Barbara Hogan took a stand yesterday, 15 September 2009, against any protracted delay in the Transnet succession saga, saying that if necessary she would use her prerogative “in consultation with Cabinet” to decide on a new CEO.
Hogan seeks quick Transnet solution

Hogan's comment that her decision would be taken “in consultation with Cabinet” could be interpreted as her not wanting to flout African National Congress (ANC) wishes while at the same time remaining true to her independent role as the shareholder minister and her duty to appoint Transnet's CEO.

Hogan was called to brief Parliament's public enterprises committee on the saga, but was limited in what she could say because of the legal action by suspended Transnet Freight Rail CEO Siyabonga Gama, who faces disciplinary action for alleged mishandling of large tenders.

Gama's urgent application to get his suspension set aside and disciplinary action stopped will be heard in the high court tomorrow. He claims these proceedings were instituted to thwart his candidacy for the top post.

Gama has the strong support of the ANC to replace former CEO Maria Ramos, who left Transnet in February to become Absa CEO.

It is likely that this support will be reflected in any Cabinet discussions on the issue. Gama's vocal backers in the Cabinet include Justice and Constitutional Development Minister Jeff Radebe and Communications Minister Siphiwe Nyanda.

She said she would “be mindful of the transformational imperatives of our times, the particular skills and experiences required for the job and the leadership capabilities of the candidate”.

“I therefore call upon everyone to put the interests of Transnet first, and arrive at a speedy resolution.” This could refer to her not wishing Gama's legal action to be prolonged by court cases as was the case with the conflict between Western Cape Judge President John Hlope and Constitutional Court judges.

The minister tried to play down the effect on Transnet of the delay in appointing a CEO, saying that while it was not ideal, it was not as problematic as it would seem.

But she said she was also mindful of the enormous challenges facing Transnet, and would agree that appointing a new group CEO “cannot be prolonged for much longer”.

Hogan did not mention any names of the preferred candidates, nor whether Gama was among them. The furore over Gama's suspension led to the withdrawal of the latest preferred candidate, BP CEO Sipho Maseko.

She said it was regrettable that the names of preferred candidates had become public.

Source: Business Day

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