The United National Transport Union (UNTU) believes axed chief executive officer of Transnet, Siyabonga Gama, should personally pay back the R222 million of the state-owned enterprises (SOE) money that he loaned to SA Express in December 2017.
Steve Harris, General Secretary of UNTU, says Transnet Group Executive Portia Derby informed him this week that the loan is irrecoverable in Transnet’s books after the struggling airlines went bankrupt at the start of the COVID-19 21-day lockdown.
SA Express, who were placed under business rescue by the Gauteng South High Court in February 2020, where not able to pay the salaries of its staff at the end of March 2020 and the liquidation process started. “Transnet does not have any preferential rights over the other creditors and will have to stand it line to recover the said debt.”
“Accordingly, there are no alternative measures available to Transnet to put in place to safeguard the repayment of the loan, Transnet will be advised of the amount recoverable, if any, during the liquidation process,” Derby wrote to Harris.
According to Harris, Gama whom has been named as a key role player in the state capture in Transnet at the Zondo Commission into state capture, was the driving force behind this loan.
Gama has not yet testified in front of the Commission. He has not been arrested in connection with any of the allegations made against him.
In 2018 Transnet announced that the SOE will be suing Gama for R166 million which was allegedly overpaid to Gupta-linked Regiments Capital. This relates to a consulting contract awarded to Regiments as part of Transnet’s purchase of R54 billion of 1,064 locomotives, which has been the subject of various investigations. This matter has not been finalised.
“Transnet were engaged in multiterm wage negotiations with organised labour at the Transnet Bargaining Council at the time the loan was made and failed to declare it while pleading poverty to workers.”
“It was only after the wage agreement was signed and implemented that UNTU learned of the loan when it was recorded in the fine script of one of Gama’s financial presentations. “When confronted about the loan, Gama maintained that the money could not have been used for the wage increases of Transnet employees. UNTU has been fighting for SA Express to pay back the money ever since,” says Harris.
Issued on behalf of UNTU by Sonja Carstens, Deputy-General Secretary: Media, Liaison and Communication. For UNTU Press Releases phone 082 463 6806 or e-mail sonja@untu.co.za
