On 10 June, Transnet reportedly dismissed suggestions that there had been a split at board level over appointing a successor to former CEO Maria Ramos. The board, asserting in an official statement that it is “united” on the issue, said that an internal audit report by Ernst & Young had been leaked “maliciously” to a Sunday newspaper. The report suggested there was financial mismanagement at Transnet, that “questionable” tenders had been issued and it spoke of a lack of control mechanisms.

Ernst & Young said in a statement it had reviewed the report that was leaked to the press and was satisfied that, while the findings were accurate and identified areas for improving certain controls, the Transnet management was in the process of implementing corrective actions on the findings reported which would significantly strengthen the control environment.

“None of these findings had a materially negative impact on the area being audited,” the auditor was quoted saying.

The business section in the Johannesburg Sunday Times suggested there was a division at board level over retaining acting CEO Chris Wells or appointing Transnet Freight Rail, CEO Siyabonga Gama. It suggested that senior management within the group’s various divisions were believed to be agitating for Gama’s appointment.

Transnet declined to comment on the internal documents leaked to the press, saying this would not serve the public interest and that they had no relevance in any event to the CEO succession issue.

Related posts:

1. TRANSNET CEO SUCCESSION
2. TRANSNET LEADERSHIP: ZUMA CLARIFIES
3. TRANSNET OVER BUDGET
4. TRANSNET & THE CLAIMS
5. TAZARA APPOINTMENT
6. TRANSNET STATEMENT ON SUSPENSION
7. TRANSNET SALARIES
8. TRANSNET DISCIPLINARY HEARING

Tags | Transnet