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Labour dispute between Transnet & group CEO referred for arbitration

An investigation implicated Siyabonga Gama in allegations of misconduct and contravention of the Finance Management Act following the acquisition of R54 billion worth of locomotives.

A video screengrab of former Transnet CEO Siyabonga Gama. Picture: YouTube

JOHANNESBURG - The dispute between Transnet and group CEO Siyabonga Gama has been referred for arbitration by the Labour Court.

Gama approached the court urgently on Monday after board chairman Popo Molefe served him with notice to substantiate why his contract should not be terminated.

An investigation implicated Gama in allegations of misconduct and contravention of the Finance Management Act following the acquisition of R54 billion worth of locomotives.

Gama will keep his job for now while the dispute over whether his contract can be terminated is taken to arbitration.

In his ruling, Judge Graham Moshoana says only in cases where special circumstances have been pointed out will a court entertain such a matter.

He says the dispute can only be resolved by an arbitration, which is stated in Gama’s contract.

Moshoana says if Transnet did continue with its process to "take the law into its own hands", Gama could approach the court for a relief order pending the outcome of the arbitration.

(Edited by Mihlali Ntsabo)

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