Gama was suspended in 2009 for having allocated a contract to refurbish 50 locomotives to Sibanye Trade Services, a company owned by the then minister of communications, General Siphiwe Nyanda. Gama was found guilty in June 2010 of a serious breach of governance requirements regarding two procurement contracts in which he signed off a R19m (US$2.75m) contract when his authority only permitted him to sign off contracts up to a maximum of R10m (US$ ).
Whilst Gama’s reinstatement is subject to him being served with an official warning based on the fact that he was not found guilty of corruption and/or dishonesty at the time of his dismissal, he will be based in chairman Mkhwanazi’s office until he has finalised the makeup of his executive team.
“The Board is of the view that such an agreement is in the best interest of the company,” Transnet said in a statement. The terms of the agreement with Gama are held to be confidential.