The resignation of former Transnet group treasurer Phetolo Ramosebudi will not exempt him from further disciplinary action, a statement from the state-owned rail and freight company has revealed.
The disciplinary action was initiated after an investigation into the company’s procurement of 1064 locomotives in 2014, where Regiments Capital and Trillian acted as transaction advisers.
Ramosebudi was informed lasat Tuesday (23 October) of the company’s intention to suspend him and was asked to respond to a number of allegations of misconduct. He tendered his resignation two days later without responding to any of the allegations.
The allegations relate to the appointment of Trillian based on “false and misleading information”; payments to Trillian for services not rendered; over-payment and loss of R150 million to Regiments Capital for transaction advisory services.; failure to monitor Regiments Capital’s performance; and failure to declare a conflict of interest.
The investigation into the locomotive deal is ongoing and further disciplinary action can be expected.
“We are taking a firm stand against the abuse of public money,” said Transnet chairman Popo Molefe.
Ramosebudi’s resignation comes against the backdrop of the dismissal of chief executive Siyabonga Gama and the suspension of chief procurement officer Thamsanqa Jiyane and supply chain manager Lindiwe Mdletshe.
Gama was dismissed after a breakdown in trust and confidence between him and the board over, among other things, the investigation into the locomotive tender.
Molefe has stressed that the board did not terminate Gama’s contract because of misconduct. “As chairman of the board, I am required to liaise constantly with Mr Gama about strategic operational matters. I do not trust him,” Mr Molefe said in an affidavit filed with the Labour Court, where Gama is contesting his initial suspension as chief executive -- which preceded his dismissal on 22 October.
