PROCUREMENT NEWS

South Africa: Gama to Face Transnet after Court Setback

Published 27 Oct 2009

Transnet said it would continue disciplinary action against its Freight Rail Division CEO, after he lost his court bid to stop the action and quash his suspension. Judge dismissed the case on the grounds that there was insufficient evidence to prove acting CEO Chris Wells had tainted the process that led to disciplinary action against Gama.

Gama now has to face up to the allegations of irregularities relating to a security tender and contract to buy 50 like-new locomotives. The court ruling places Gama in a difficult position. He now has to face up to his accusers while containing the fallout from his high-profile battle for the Transnet CEO post, for which he was not short-listed. Gama had claimed that Wells, in delegating the power to Transnet group human resources executive to institute the disciplinary action, had conspired to prevent him from becoming Transnet CEO.

Transnet board had endorsed the decision to suspend Gama. Maria Ramos, the former Transnet group CEO, had passed the details of a forensic investigation relating to Gama on to the board.

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