Former Transnet chair admits Gama reinstatement was wrong ‘in hindsight’

The state-owned entity’s board chair Mafika Mkhwanazi continued his testimony at the commission on Monday.

Gama was reinstated as CEO even after he was found guilty of gross negligence.

MKhwanazi denied reports that former Public Enterprises Minister Malusi Gigaba was involved in the reinstatement, saying that Gigaba only wanted a review of Gama's dismissal.

But he conceded that the board never completed the review.

Mkhwanazi, however, could not answer how it come to the decision to return Gama to office, despite legal advice from law specialist Christopher Todd.

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"The assumption would have been that Mr Gama would have paid certain cost at the high court process then the idea was that if he had to pay those then Mr Gama needed to be refunded 75% of those costs only, but still pay 25%," Mkhwanazi said.

When evidence leader, Advocate Anton Myburgh, wanted to know who gave the directive for the settlement, Mkhwanazi denied any knowledge. 

He also admitted that - in hindsight- it was wrong for the Transnet board to reinstate Gama.

“In hindsight, it was wrong for us to reinstate Mr Gama, especially for signing procurement documents to illegally appointing a security company GNS to do business with Transnet. Mr Gama also admitted to Mr Christopher Todd that the GNS contract was wrong.

“Mr Gama admitted that there were gaps and loopholes in the contract. He also admitted that the GNS contract was a complete fraud.”