Former Transnet CEO will still receive R3m salary despite being fired

Former Transnet CEO will still receive R3m salary despite being fired

- Despite being fired, the Transnet former CEO will still receive a R3m payout

- A board member confirmed that Siyabonga Gama will not report for duty, but will receive a severance package

- This comes despite the fact that the former CEO was implicated in maladministration and corruption within the state owned enterprise

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Siyabonga Gama, the axed Transnet chief executive officer, will still get his massive R3m salary for the next six months, despite not having to spend a minute in an office.

In an interview with eNCA, Edward Kieswetter, a Transnet board member, confirmed the ex CEO will still get his paycheck despite being axed on Monday.

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According to thesouthafrican.com, the troubled state owned entity has been under scrutiny for a while now. The recent annual financials for the entity showed gross irregular spending amounting to R8.1 billion.

Transnet is also under scrutiny over its conduct pertaining to a R500 million pension fund. The DA alleges the pension fund was looted under the administration of ex president, Jacob Zuma and axed executive, Brian Molefe.

It's clear the enterprise is plagued by nepotistic rot when considering Transnet’s R25 billion tender scam with China South Rail (CSR) in 2013, which was facilitated by the Guptas.

Briefly.co.za learned that controversy surrounding Transnet, as well as its incompetence, continues to grow after sacking Gama. Popo Molefe, the comany's chairperson, reached a fever pitch in Gama's last few days.

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Kieswetter said Gama’s contract was terminated because the Transnet board lost faith in his ability to lead the parastatal.

While most axed employees are booted from their office, Gama is set to still receive his cosy R3m severance package.

Kieswetter explained the exorbitant firing fee, saying it's usually the practice with senior execs.

He told eNCA it is best for the company to remove the person, so they're no longer present, in order for the company to return to stability.

Kieswetter said for those reasons, although the person still receives a payout, the person is no longer needed to report for duty.

"Gama’s remuneration is in public domain. Yes, it’s a few million.”

Gama's firing has been downplayed by board members. This, despite the exec being implicated in corruption and maladministration at Transnet.

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Source: Briefly.co.za

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