Transnet CEO Portia Derby and CFO Nonkululeko Dlamini resign

Transnet has confirmed that Portia Derby has resigned from her role as the group chief executive (GCE) and executive director on the board of directors, effective from 31 October 2023.

The company’s group chief financial officer and executive director on the board, Nonkululeko Dlamini, has also submitted her resignation. She left the company today after serving a month’s notice.

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The two stepped down from their roles following calls by the Association of South African Chambers for the Transnet board to be removed.

The association said the board was responsible for Transnet’s underperformance. 

On Friday, Transnet seemingly defended Derby, saying she steered the company through an “extremely challenging period” after the setting aside of the 1064 locomotive contract “which has created a significant binding constraint for Transnet that remains to this day”.

“Furthermore, the period of the current executives’ tenure was impacted by the global Covid-19 pandemic, immediately thereafter the looting, the hacking of the ICT system, the floods in KwaZulu-Natal and the strike towards the end of 2022, all of which have adversely impacted Transnet,” it said.

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“The floods in particular required a significant capital outflow to return to service the critical Container Corridor between Johannesburg and Durban.”

Gordhan defends Transnet board

Calls for the axing of the Transnet board have also solicited a response from Public Enterprises Minister Pravin Gordhan, who acknowledged the challenges at the company but said he was “confident” the board understand the challenges, too.

“The recently announced annual financial results of Transnet have made it very clear that 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,” said Gordhan.

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

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

Michelle Phillips, the chief executive of Transnet Pipelines (TPL), will be the acting GCE from 1 November 2023 until a permanent GCE is appointed.

Hlengiwe Makhathini will act as group CFO while a permanent replacement is sought.

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Derby will be available until the end of the calendar year to support the acting GCE and the board as part of the handover process.