Former Transnet CEO denies knowledge of Gugu Gigaba’s appointment

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Former Transnet group CEO Siyabonga Gama has told the State Capture Commission that he does not have any knowledge or involvement in the appointment of former Public Enterprises Minister Malusi Gigaba’s sister – Gugu Gigaba at Transnet in April 2016.

The revelation of the appointment was made by Gigaba’s estranged wife Noma during her appearance before the commission earlier this week.

Gama says he was not aware of the appointment of Gugu Gigaba even though a memo was made out to him recommending the appointment.

He says although he has never met Gugu Gigaba, it was not unusual for someone to be appointed outside of the normal Transnet recruitment process which involves advertising vacancies.

“There could be exceptions but normally when you appoint people externally you would have exhausted the internal appointment processes.  So generally speaking, even with this process, it’s expected that there would be an exhaustion of internal competition,” the commission suggests.

“Yeah,” replies Gama.

Trillian Capital

The Commission has also heard that in December 2016 Gama approved a R93 million payment to Gupta-linked company Trillian Capital for work done by Regiments Capital.

According to an investigation report by MNS Attorney, the work related to advisory services offered to Transnet for the attainment of a Club loan agreement for the controversial 10-64 locomotive procurement contract.

The Commission heard that following the wrongful payment to Trillian, Gama met with Gupta-associate Salim Essa – who also owned 60% of Trillian – at a hotel in Dubai.

Gama responds to questions by Senior Counsel Anton Myburgh. “It reflects there on 12 September 2016, Regiments wrote a letter to Transnet and recorded the following in relation to the Club loan. The payment of R93 million for the Club loan. This fee relates to the work done by Regiments for the capital raising transaction management and hedging advisory services related to the 1064 locomotives funding together with the Club loan which Regiments invoiced and was paid the relevant fee. So it’s not that they allowed someone else to get the fee, they say that they invoiced and were paid. You see Mr Gama you met with Mr Essa the next month in Dubai.”

Commission hears Transnet-related evidence: Siyabonga Gama Part 2

Source: sabcnews