Gordhan ‘confident’ in Transnet board amid calls for change in leadership

Public Enterprises Minister Pravin Gordhan has thrown his weight behind the Transnet board, amid calls for change in leadership.

The Association of South African Chambers called for the axing of the board, saying it was responsible for Transnet’s underperformance. 

This comes after a directive Gordhan gave to the Transnet board about three weeks ago to make recommendations to address a range of operational shortcomings facing the state-owned freight and logistics company. 

Gordhan’s confidence

Gordhan said he noted the concerns about Transnet’s performance.  

“The recently announced annual financial results of Transnet have made it very clear the entity urgently requires serious interventions that will address the root causes of the deficiencies that are having a negative impact on our economy and are hurting our export competitiveness,” he said.

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“The board is seized with the injunction I have given it, and I am sure the issues that have been raised by the chambers will be addressed in its recommendations or in the feedback the Board will present to the shareholder. The shortcomings of Transnet are of national concern.” 

Among the issues Gordhan instructed the board to consider were operational transformation, root causes, stringent/rigorous accountability oversight, management review, information and operational data transparency, excessive cost structure, and employee engagement.

“I am confident the board understands the scale of the challenges that are confronting Transnet, and I can assure the public the board has my full support in its effort to come up with the requisite remedial actions. We will be engaging the chambers,” said Gordhan. 

Transnet’s performance

Addressing Transnet’s 2022/2023 performance, Gordhan said he and the board were aligned on the urgent need to turn around the operational performance and financial position of Transnet. 

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“Transnet is at an inflection point. The deterioration in its operational and financial performance will be stopped. Nothing will be allowed to get in the way of the effective implementation of a radical plan, with some changes being evident in the short term and others taking longer given the complexity of the entity, Gordhan said at the time. 

“To this extent, the establishment of the board, under the leadership of [former head executive at Anglo American South Africa] Andile Sangqu, is emblematic of our clear intent to fix Transnet. The government’s establishment of the National Logistics Crisis Committee is a further demonstration of our resolve to put the logistics crisis behind us.

“The board is commended on very quickly understanding the seriousness and the gravity of the challenges facing Transnet and the economy. The commitment and extraordinary efforts of the board are highly appreciated.”