The statement was issued on Tuesday after a meeting between the two aimed at addressing media speculation that Mkhwanazi would be removed and some of Transnet's non-executive directors would be rotated.
The statement addressed several points that were apparently discussed at the meetings.
The first was that Mkhwanazi and other Transnet board members would continue in their current positions and execute their fudiciary duties, unless Cabinet decided otherwise.
The second point was that the process of seeking better ways of running state-owned enterprises and strengthening their boards continued and that Cabinet would "in its time determine the future composition of other stated-owned enterprise boards, including that of Transnet."
Gigaba expressed regret that Cabinet discussions were leaked to the media and that such action gave rise to speculation, which was not in the interest of Transnet, its board and employees.
The statement said that Mkhwanazi would be inaugurated as a non-executive director of Eskom.
