Public Enterprises Minister Pravin Gordhan has appointed a new interim board for State-owned Transnet, pending a full appointment, in consultation with Cabinet.
The interim board will be led by Popo Molefe as chairperson and includes directors Louis Zeuner, Ramasela Ganda, Ursula Fikelepi, Edward Kieswetter and Dimakatso Matshoga.
Gordhan has also removed Seth Radebe, Potso Mathekga and Zainul Nagdee as nonexecutive directors with immediate effect.
“Transet is facing serious allegations of maladministration and corruption. The previous board has not demonstrated appreciation of the seriousness of issues at hand or the ability to deal with these decisively in order to protect the entity in the interest of South Africans,” Gordhan said in a statement on Tuesday.
He further highlighted that the directors of State-owned companies need to be held to a high standard of corporate governance and accountability, so as to protect the assets of the State.
Gordhan is confident the new interim board has the capacity to provide the kind of corporate governance needed during this period, as well as to provide stability and certainty.
The Organisation Undoing Tax Abuse (Outa) and the Federation of Unions of South Africa (Fedusa) have welcomed the appointment of the interim board at Transnet.
"Molefe has a proven record of tackling corruption head on and this is what Transnet needs now – fearless and strong leadership to identify and root out corruption and maladministration in this critical component of our economy," Outa stated.
“The appointment of Popo Molefe and the new board members was long overdue and Outa believes the corruption clean-up at Transnet will now start with urgency. The new board consist of experienced and skilled individuals who proved their worth in the past at various companies and organisations.
“We want to commend this bold and courageous move by Minister Pravin Gordhan in this mission of fixing the ailing State-owned companies. These companies are supposed to be drivers of the economy and not a burden carried by South African taxpayers. To date, we have seen decisive action at Eskom, Denel and now Transnet. We are eagerly awaiting announcements on SA Express, Safcol and Alexkor,” added Outa transport portfolio manager Rudie Heyneke.
Fedusa, meanwhile, commented that Molefe has demonstrated his ethical leadership and sincere commitment to clean governance during his long drawn out court battles with the former Transport Minister to force him to appoint a permanent board for another troubled State company, the Passenger Rail Agency of South Africa.
The Portfolio Committee on Public Enterprises is also in favour of Molefe's appointment as interim Transnet chaiprerson.
“[His] appointment is a serious attempt by the Minister to tackle corruption and to turn around Transnet to deal with the challenges the freight utility company has been battling with,” said committee chairperson Lungi Mnganga-Gcabashe.