Cape Town – Portia Derby’s resignation as CEO of Transnet did not come as a surprise, the United National Transport Union (Untu) has said.
Derby had been appointed in 2020 to address financial, operational challenges, and corruption issues at Transnet.
However, as the company continued to struggle, pressure mounted for her resignation.
According to EWN, Untu expressed its support for leadership at Transnet as long as they lacked a fraudulent or corrupt past and possessed the necessary skills to bring about positive change.
“Untu has always maintained that it supports anyone in charge of Transnet, as long as they do not have a fraudulent or corrupt past and possess the necessary skills and expertise to turn the entity around,” the report quoted spokesperson for the union Atenkosi Plaatjie as saying.
In addition to Derby, Transnet’s CFO, Nonkululeko Dlamini, also resigned.
ALSO READ | Transnet CEO Portia Derby resigns
Untu emphasized the importance of urgently addressing the leadership vacuum and ensuring that the appointees have the tools and support to address Transnet’s financial distress and operational issues.
Meanwhile, IOL reported on Monday that Transnet is experiencing a significant loss of highly experienced staff members, which is causing concern.
The Department of Public Enterprises has expressed worry over Transnet’s inability to retain important personnel and is collaborating with the Transnet board to develop a turnaround plan, the report said.
Public Enterprises Minister Pravin Gordhan attributed some of Transnet’s woes to the previous administration’s decision to offer voluntary severance packages, resulting in the loss of highly skilled individuals.
“Firstly, we have a debt burden of about R147 billion, secondly, we have had declining volumes of exports, thirdly, declining volumes mean less revenue for Transnet, less process for companies, and therefore, less corporate tax, and therefore, less tax collection. So, you have a vicious cycle,” Gordhan said, according to the report.
The report said there are also reports suggesting that Siza Mzimela, CEO of Transnet Freight Rail, may be the next senior leader to depart from the company.
The loss of key personnel is seen as a significant challenge for Transnet’s recovery.
Follow African Insider on Facebook, Twitter and Instagram
Picture: X/@SbusisoMMhlanga
For more African news, visit Africaninsider.com
Compiled by Betha Madhomu
