The dismissal of Siyabonga Gama, the suspended CEO of Transnet Freight Rail, is to be welcomed. It is a refreshing but unfortunately incredibly rare instance of appropriate action against corrupt officials and will go some way to restoring the battered reputation that the constitutional principle of ‘accountability' has acquired under the ANC. The challenge is now to extend this principle to other members of the public service who have abused their position or are not performing. So, the real test of this precedent will be the extent to which it is now applied going forward. Is it a once off, or the beginning of a real change for corporate governance under the ANC?
Despite the breakdown of Mr. Gama's relationship with the board, Mr. Gama had been sheltered by his political connections, hindering the board's efforts to take action against him. The dismissal of Mr. Gama, recommended by an independent chairman, follows a disciplinary process that found Mr Gama guilty of all charges, including an ‘irretrievable breakdown in his relationship with Transnet', failure to comply with conditions relating to a R 800 million contract for refurbishing locomotives and, most significantly, for irregularly awarding a R 18 million contract to a firm linked to Communications Minister Siphiwe Nyanda.
The DA believes that Public Enterprises Minister Barbara Hogan should be commended for her principled stance on this matter. Minister Hogan's actions are a watershed moment for boards wishing to perform according to good governance standards and not be intimidated by the politically powerful. Her axing of Mr. Gama contradicts the ANC's preferred policy of cadre deployment which seeks to deploy party loyalists to key positions in the public service and state-owned enterprises - and keep them there - regardless of their qualifications, experience or performance.
This is to ensure that the ruling party can control the distribution of jobs, tenders and other benefits, thus enriching the politically connected few. Other members of the current ANC administration would do well to follow Minister Hogan's example of individual initiative and launch inquiries, and disciplinary action where necessary, against those involved in tender fraud and other forms of corruption. There are several prominent examples deserving close and immediate attention. They include:
· Dan Mofokeng, former Gauteng housing MEC and husband of ANC provincial legislature member Jacqueline Mofokeng, bought a Mercedes Benz CLS55 AMG for cash, and a R2-million luxury home in Six Fountains, near Pretoria, with money from the Land Bank.
· The Land Bank's R800-million loan to Pamodzi Holdings, a company in which Deputy President Kgalema Mothlanthe had a stake.
· The City of Durban's sale of its fairly well-run bus service company, Durban Transport to Remant Alton, a company headed by ANC stalwart, Diliza Mji for R70-million.
· The allegation that former president Thabo Mbeki's solicited a R30-million bribe from a German shipbuilding contract to guarantee that it would receive a contract as part of the Arms Deal.
But what of Minister Nyanda? There is reason to believe that Communications Minister Siphiwe Nyanda, who is known for squandering public money of expensive cars and prolonged stays in luxury hotels, benefited from the contract irregularly awarded by Mr Gama. Indeed, the very fact that Mr. Gama was dismissed for irregularities immediately poses questions for the recipient of the tender, Minister Nyanda. I will be writing to Public Enterprises Minister Barbara Hogan to request that she instigate a full investigation into the matter, through a forensic audit at Transnet, and take appropriate steps to ensure that the proper disciplinary procedures are followed unhindered by political interference from the ANC.
Statement issued by Pieter van Dalen, MP, Democratic Alliance deputy shadow minister of public enterprises, June 30 2010
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