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<p>Transnet CEO, Siyabong Gama, remains fired. The company board made the move whilst a process of arbitration was expected to take place as ordered by labour court last Friday. To get more details about this move and where to for Transnet, CNBC Africa is joined by board member Prof. Edward Kieswetter.</p>


Transnet board gets rid of CEO Siyabong Gama

<p>JOHANNESBURG (Reuters) &#8211; The board of directors of South African state-owned logistics firm Transnet said it had removed Chief Executive Siyabonga Gama, who has been accused of misconduct in a multi-million-dollar deal.</p>
<p>Transnet, which operates nearly three-quarters of the African rail network, the bulk of which is in South Africa, has been investigating allegations of corruption in the procurement of diesel and electric locomotives.</p>
<p>The board said late Sunday that it had lost confidence in Gama and that his last day as CEO would be Monday.</p>
<p>Gama was not immediately available for comment.</p>
<p>“We value and require transparency, accountability and expenditure that is cost-effective &#8230; But we have found Gama’s conduct – particularly during the investigation into the tender for new locomotives, with an inexplicable increase in excess of 9 billion rand ($627 million) in costs &#8211; to be incompatible with that culture,” Transnet’s board said.</p>
<p>Transnet is one of a handful of South African state firms that became embroiled in corruption scandals under former President Jacob Zuma.</p>
<p>However, Zuma has denied any wrongdoing and says he is the victim of a politically motivated witch-hunt, but new President Cyril Ramaphosa has launched an inquiry into allegations that tenders were awarded illegally during his predecessor’s time in office.</p>
<p>($1 = 14.3462 rand)</p>
<p>Reporting by Alexander Winning, Editing by Sherry Jacob-Phillips</p>


What you need to know about the removal of South Africa’s Transnet CEO

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<p>Siyabonga Gama has been given the boot from his position as Transet’s CEO after serious allegations against him for violating financial, procurement and fiduciary responsibilities have emerged. Gama has been told that he has 10 days to give an explanation to why his appointment as CEO should not be terminated. Joining CNBC Africa for clarity on what really is happening at Transnet is the company&#8217;s Non-Exercutive Director, Mpho Letlape.</p>


Transnet board serves CEO Siyabonga Gama with notice of termination

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<p>The South African Heavy Haul Association has signed an MOU with the Southern African Rail Association. The signing took place at SAHHAs 2018 Technical Workshop. CNBC Africa’s Fifi Peters spoke with Babe Botana, Executive Director, Southern Africa Rail Association and asked how this MOU will advance Africa&#8217;s heavy haul rail industry.</p>


SARA calls for increased govt support to drive Africa’s heavy haul rail industry

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<p>CNBC Africa spoke to Transnet’s Brian Monakali, Chairperson of SAHHA &#038; IHHA and GM about key takeaways from the just ended South African Heavy Haul Association technical workshop.</p>


Transnet’s Brian Monakali on key takeaways from the SAHHA workshop

<p>What will Africa’s heavy haul railway system look like in 2030 as artificial intelligence, big data analytics and the Internet of Things moulds traditional sectors? This is the question that railway companies across the globe are grappling with as the 4th Industrial Revolution shapes the way we work, live, travel and transport freight.</p>
<p>With a view to answering this question, the International Heavy Haul Association (IHHA) has called on its member organisations to devise a roadmap ahead of a major industry conference to be held in Norway in June 2019.</p>
<p>In the build up to the event, the South African Heavy Haul Association (SAHA), will be bringing experts from across the continent together to debate the implications for Africa, where safety and security, infrastructure constraints and other challenges have impacted the movement of goods across borders.</p>
<p>Next week’s technical workshop, held from 4-6 September 2018, will bring together skilled professionals from the Southern African Railways Association (SARA), which has members in countries including Zambia and Swaziland.</p>
<p>“Are we ever going to have driverless, fully automated trains in Africa, considering our landscape? I’m hoping that by the end of the three-day workshop, delegates would have formulated a clear vision on how we can collaborate on ensuring African railways are future-proof,” says IHHA global chairperson Brian Monakali, who is also the General Manager of Capital Planning at Transnet Freight Rail.</p>
<p>“Due to South Africa’s position as the global chair of the IHHA, we are also expected to lead the discourse on how to revive African railways, promote intra-Africa trade and embrace new technology,” Monakali adds.</p>
<p>He says intra-Africa trade stands at roughly 12 percent compared to our counterparts America, Europe and Asia at 60-80%. This is due to because of a lack of interconnected railway systems, poor condition of our rail infrastructure, amongst other things.</p>
<p>Monakali says insights shared during the workshop will inform a working document that will be an input into the Development of a Global 2030 Vision for Heavy Haul, by IHHA member countries, and to be presented to the conference in Norway.</p>
<p>Monakali is available for interviews to talk about SAHHA and IHHA latest developments, Transnet’s involvement in this new journey and the vision development for Africa’s heavy haul railways.</p>
<p>&nbsp;</p>
<p><em>South African Heavy Haul Association press release</em></p>


What does the future of Africa’s railways hold?

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<p>The CEO and two other senior officials of state-owned logistics utility, Transnet are facing suspension. Transnet board served CEO Siyabonga Gama, chief procurement officer Thamsanqa Jiyane and supply chain manager Lindiwe Mdletshe with notices of intention to suspend. Transnet Board Chairperson, Popo Molefe joins CNBC Africa for more.</p>


Molefe sheds light on Transnet suspension notices

<p>Transnet&#8217;s CEO Siyabonga Gama, Chief Advanced Manufacturing Officer Thamsanqa Jiyane and supply chain manager Lindiwe Mdletshe have been issued with suspension notices. This comes as South Africa’s National Treasury concluded its investigation of alleged corruption at state logistics firm Transnet last month.</p>
<p>The report covered allegations of misconduct concerning state logistics firm Transnet’s purchase of over 1,000 trains from China South Rail.</p>
<p>The report was given to the relevant parties for comment for which they were given two weeks to respond.</p>
<p>In May South Africa&#8217;s Public Enterprises Minister Pravin Gordhan appointed a new board at the logistics company with Popo Molefe as its chairperson.</p>
<p>Gordhan attributed the board changes to the &#8220;serious allegations of maladministration and corruption&#8221; Transnet faced.</p>
<ul>
<li>With additional reporting from Reuters</li>
</ul>


Transnet CEO issued with suspension notice

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<p>Transnet CEO, Siyabonga Gama discussed the state owned entity&#8217;s dealings with the controversial Gupta family and executive management issues at Transnet.</p>


Transnet CEO Siyabonga Gama talks earnings, Gupta links

<p><em>Enterprise application software provider SAP in July initiated an <a href="http://cnbc.africa/trending/state-capture/2017/07/13/sap-investigate-gupta-corruption-allegations/">independent investigation</a> into allegations that it agreed to pay <a href="http://amabhungane.co.za/article/2017-07-11-guptaleaks-software-giant-sap-paid-gupta-front-r100m-kickbacks-for-state-business">10% “sales commission” </a>to a company controlled by the Guptas to clinch business from Transnet. </em><em>SAP also launched an internal review. </em></p>
<p><em>Following the review the company has voluntarily disclosed information about its South Africa business to U.S. authorities responsible for enforcing the U.S. Foreign Corrupt Practices Act. The disclosures relate to misconduct relating to the management of Gupta-related third parties. It has initiated disciplinary procedures against three employees and made significant changes to its global sales deal processes. B</em><em>elow is its emailed statement from SAP on the results of the investigation:</em></p>
<p><strong>WALLDORF, Germany — October 26, 2017 — SAP SE (NYSE: SAP) </strong>has voluntarily disclosed the situation in its South Africa business to U.S. authorities responsible for enforcing the U.S. Foreign Corrupt Practices Act. It has initiated disciplinary procedures against three employees and made significant changes to its global sales deal processes.</p>
<p>“As a global company with a commitment to integrity and compliance, the past three months have been humbling for us,” said Adaire Fox-Martin, member of the Executive Board of SAP SE, who leads SAP’s business in Middle and Eastern Europe (MEE), Europe, the Middle East, and Africa (EMEA), and Greater China. “The allegations of wrongdoing in our South African business have had a profound impact on our employees, customers and partners, and on the South African public — and we apologize wholeheartedly for this.”</p>
<p><strong>READ: </strong><a href="http://cnbc.africa/news/2017/07/17/sap-names-acting-executive-team-law-firm-south-africa-probe/">SAP names acting executive team, law firm for South </a></p>
<p>Fox-Martin said SAP had initiated its voluntary disclosure on July 13, 2017, and that SAP has committed to full and complete cooperation with the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC). She confirmed that the investigation by the DOJ and SEC continues.  “We cannot emphasize enough how seriously the SAP Executive Board takes these allegations, or how committed we are to managing this process in a transparent, ethical and responsible way,” Fox-Martin said.</p>
<p>Disciplinary Measures To date, the investigation has not revealed any evidence of a payment to a South African government official, including Transnet and Eskom employees. It has, however, uncovered indications of misconduct in issues relating to the management of Gupta-related third parties. To this end, SAP has instituted formal disciplinary proceedings, in accordance with South African labour law, against three employees who were placed on administrative leave at the beginning of the investigation. SAP has been clear from the outset that it will not tolerate misconduct or wrongdoing.</p>
<p>The investigation has found that the fourth employee placed on administrative leave had no material involvement with Gupta-related parties. The employee will return to work.</p>
<p>Process Changes  The SAP Executive Board has decided to eliminate sales commissions on all public sector deals in countries with a Corruption Perceptions Index (according to Transparency International) below 50, effective immediately. South Africa’s rating is 45.</p>
<p>The SAP Executive Board has initiated — on a global basis — extensive additional controls and due diligence into relationships with sales agents and value-added resellers, including additional audit functions.</p>
<p>SAP will allocate additional legal compliance staff to the SAP Africa market unit. They will be based in South Africa and report into SAP’s Global Compliance organization.  SAP will further strengthen its Compliance Committee in the SAP Africa region, consisting of local management, compliance and other corporate functions, to ensure individual deal sanity and integrity, and promote compliance generally.</p>
<p>In July, SAP promised to publish findings of the Baker McKenzie investigation once completed. Since the investigation is still ongoing, and in deference to ongoing investigations of the DOJ and the SEC, SAP cannot provide further details currently. It is SAP’s intention to release complete findings at the end of the investigation.</p>
<p><strong>APPENDIX</strong><br />
(Status of the Baker McKenzie Investigation) Baker McKenzie initially focused its investigation on SAP&#8217;s contracts with Transnet and Eskom, and this part of the investigation will conclude by the end of 2017. Following a data analytics search of 8.4 million documents, the law firm has completed a first-level review of 131,609 documents, and a second level review of 52,985 documents. Baker McKenzie has conducted numerous interviews. SAP has also invoked its third-party audit rights with entities understood to be Gupta-related – and these audits are in the early stages.  Baker McKenzie has been contracted by SAP to continue to investigate the public-sector business in South Africa going back to 2010. To date the investigation has determined that, between December 2014 and November 2016, SAP concluded two contracts for the sale of software to Transnet and two contracts for the sale of software to Eskom, each with the assistance of an entity currently understood to have been Gupta-related.</p>
<p>In connection with these four contracts, SAP provided software and received revenue totalling approximately ZAR 660 million (approximately USD 48 million), and paid commissions to entities currently understood to be Gupta-related totalling approximately ZAR 94 million (approximately USD 6.8 million). The amounts actually paid to the third parties totalled approximately ZAR 107 million (approximately USD 7.7 million) because, by contract, each commission payment included an amount of VAT for taxes due on the receipt of the funds.</p>
<p>In December 2016 and June 2017, SAP concluded two additional contracts to provide software and services to Eskom with the assistance of an entity currently understood to have been Gupta-related. No revenue has been received or commissions paid in connection therewith.</p>
<p>After SAP&#8217;s initial voluntary disclosure, Baker McKenzie has spoken on SAP&#8217;s behalf with prosecutors at both the DOJ and SEC, and has started the process of sharing documents and information.</p>


Multinational SAP concludes probe, reports Gupta-related misconduct to US authorities

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<p>Transnet has been putting a lot of effort into getting rail friendly cargo off the roads. CNBC Africa caught up with Group Chief Executive of Transnet, Siyabonga Gama at the South Africa Italy Indaba.</p>


Transnet’s Siyabonga Gama on their road to rail strategy

<p data-reactid="39"> South Africa’s state-owned freight logistics group Transnet will invest an additional 84 billion rand ($6 billion) over the next three years to increase capacity at ports and railway lines, the Department of Public Enterprises (DPE) said on Wednesday.</p>
<p data-reactid="40">However, Transnet does not expect to meet a target of 330 million tonnes of freight rail by the end of the 2018/19 financial year, due to a domestic and global economic downturn, the DPE’s latest annual report tabled in parliament showed.</p>
<p data-reactid="41">($1 = 13.5709 rand)</p>
<div class="Attribution_attribution_o4ojT" data-reactid="42">
<p class="Attribution_content_27_rw" data-reactid="43">Reporting by Wendell Roelf; Editing by James Macharia</p>
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S.Africa’s Transnet to spend additional $6BN on ports, railways over three years

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<p>There seems to be a breakdown of ethics in South Africa, from Eskom to Transnet and as questions hang over the Public Protector&#8217;s head on whether she acted ethically on her call for the mandate of the Reserve Bank to be changed. Joining us to talk about all this and more is Gideon Pogrund, GIBS, Director: Ethics and Governance Think Tank and Cynthia Schoeman, Managing Director, Ethics Monitor.</p>


Behind the breakdown in SA’s ethics

<p data-reactid="38">Germany&#8217;s SAP named a new executive team in South Africa on Friday, two days after the software giant put four senior managers on leave, pending its investigations into allegations that it was involved in a government bribery scheme.</p>
<p data-reactid="39">SAP said 25-year company veteran Claas Kuehnemann will step into the role of acting managing director for Africa, in charge of the company&#8217;s business in 51 countries, and that Peter David, its finance chief for Europe, Middle East and Africa, will become acting chief financial officer, SAP Africa.</p>
<p data-reactid="40">Europe&#8217;s largest software company also said it had hired Chicago-based international law firm Baker McKenzie to conduct an external investigation. SAP said on Wednesday it would run its own, internal probe using its own compliance organisation.</p>
<p data-reactid="41">Baker McKenzie will work with various experts, including forensic firm FTI Consulting, the company said.</p>
<p data-reactid="42">&#8220;My interim role is to support our employees, customers and partners across all our business sectors while the due diligence process is conducted,&#8221; Kuehnemann said in a statement.</p>
<p data-reactid="43">South African media reported on Tuesday that SAP paid alleged kickbacks in the form of sales commissions to a firm linked to the politically connected Gupta family, who are known to be close friends of President Jacob Zuma.</p>
<p data-reactid="44">AmaBhungane, an investigative reporting group, together with the Daily Maverick&#8217;s Scorpio investigative team, reported that the alleged kickbacks were to clinch a deal with rail and logistics company Transnet and other state-owned firms worth 1 billion rand ($76.7 million).</p>
<p data-reactid="45">The AmaPhungane report was based on leaked emails and documents that they say show how the powerful Gupta family unduly influenced the awarding of government contracts worth hundreds of millions of dollars.</p>
<p data-reactid="46">SAP has not named the four senior executives it put on administrative leave while investigating the company&#8217;s actions.</p>
<p data-reactid="47">Reuters has not been able to independently verify the allegations.</p>
<p data-reactid="48">The Guptas, Indian-born South Africans, and Zuma have denied wrongdoing. A Gupta family spokesman and Zuma&#8217;s spokesman did not respond to calls and emails for comment on the SAP story.</p>
<p data-reactid="50">Transnet said in a statement that it has been an SAP customer since 2000 but that it was unaware of the parties reportedly involved in SAP sales to the company. It referred queries to SAP and its sales partners.</p>
<p data-reactid="51">Baker McKenzie advises a wide range of African companies, multinationals and financial institutions and employs 60 attorneys from its offices in Johannesburg.</p>


SAP names acting executive team, law firm for South Africa probe

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<p>South Africa Finance Minister Malusi Gigaba said government cannot give free bailouts to state owned companies; and called for good corporate governance to improve performance of SOEs.</p>


SOEs must show improved performance – Malusi Gigaba

<p>Enterprise application software provider SAP has initiated an independent investigation into allegations that it agreed to pay <a href="http://amabhungane.co.za/article/2017-07-11-guptaleaks-software-giant-sap-paid-gupta-front-r100m-kickbacks-for-state-business">10% “sales commission” </a>to a company controlled by the Guptas to clinch business from Transnet.</p>
<p>The New York Stock Exchange listed company is governed by <a href="https://www.justice.gov/criminal-fraud/foreign-corrupt-practices-act">The Foreign Corrupt Practices Act, </a>which prohibits such practices.</p>
<p>SAP&#8217;s probe will be spearheaded by a multinational law firm and overseen by Executive Board Member Adaire Fox-Martin, who will  vigorously review contracts awarded by SAP South Africa.</p>
<p>SAP has also launched an internal review and will make the results of the investigation public once it is concluded.</p>
<p><strong>READ: </strong><a href="http://cnbc.africa/news/political/2017/07/13/state-capture-probe/">SA’s Public Protector wants an urgent inquiry into state capture</a></p>
<p>In a statement SAP said &#8220;Consistent with company policy, SAP has brought in senior expert staff across all relevant functions while the current management team has been placed on administrative leave pending the findings of the review&#8221;.</p>
<p>Fox-Martin is currently travelling to South Africa to address the concerns of customers, partners and employees.</p>
<p>The SAP (Global) interim team are expected to arrive from Germany tomorrow morning.</p>


SAP to investigate Gupta corruption allegations

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<p>Transnet released its annual results yesterday. Garry Pita, CFO, Transnet joins CNBC Africa for more.</p>


Transnet

Transnet board gets rid of CEO Siyabong Gama

What you need to know about the removal of South Africa’s Transnet CEO

Transnet board serves CEO Siyabonga Gama with notice of termination

SARA calls for increased govt support to drive Africa’s heavy haul rail industry

Transnet’s Brian Monakali on key takeaways from the SAHHA workshop

What does the future of Africa’s railways hold?

Molefe sheds light on Transnet suspension notices

Transnet CEO issued with suspension notice

Transnet CEO Siyabonga Gama talks earnings, Gupta links

Multinational SAP concludes probe, reports Gupta-related misconduct to US authorities

Transnet’s Siyabonga Gama on their road to rail strategy

S.Africa’s Transnet to spend additional $6BN on ports, railways over three years

Behind the breakdown in SA’s ethics

SAP names acting executive team, law firm for South Africa probe

SOEs must show improved performance – Malusi Gigaba

SAP to investigate Gupta corruption allegations

Tracking Transnet’s growth strategy

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Transnet

Transnet board gets rid of CEO Siyabong Gama

What you need to know about the removal of South Africa’s Transnet CEO

Transnet board serves CEO Siyabonga Gama with notice of termination

SARA calls for increased govt support to drive Africa’s heavy haul rail industry

Transnet’s Brian Monakali on key takeaways from the SAHHA workshop

What does the future of Africa’s railways hold?

Molefe sheds light on Transnet suspension notices

Transnet CEO issued with suspension notice

Transnet CEO Siyabonga Gama talks earnings, Gupta links

Multinational SAP concludes probe, reports Gupta-related misconduct to US authorities

Transnet’s Siyabonga Gama on their road to rail strategy

S.Africa’s Transnet to spend additional $6BN on ports, railways over three years

Behind the breakdown in SA’s ethics

SAP names acting executive team, law firm for South Africa probe

SOEs must show improved performance – Malusi Gigaba

SAP to investigate Gupta corruption allegations

Tracking Transnet’s growth strategy

News Tips

Advertise With Us

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