Mashatile: ANC deployment committee has not rejected Transnet CEO candidate | Business


The architects of state capture used black representation to legitimise their uncouth dealings in state departments and state companies such as at Transnet, Prasa and Eskom, argues the author.


The architects of state capture used black representation to legitimise their uncouth dealings in state departments and state companies such as at Transnet, Prasa and Eskom, argues the author.

  • The ANC Deployment Committee has not rejected Transnet’s CEO applicant Michelle Phillips for being “not black enough”.
  • Phillips remains a frontrunner for the job.
  • Government processes of vetting and due diligence are responsible for the delay.
  • For more financial news, go to the News24 Business front page.

The delay in the appointment of new executives at Transnet has not been caused by the ANC’s Deployment Committee but by the usual vetting and due diligence government processes that are followed in making top appointments in the public service and state-owned entities. 

It has been widely reported that the ANC deployment committee had rejected the Transnet board’s recommendation that acting group CEO Michelle Phillips because “she was not black enough”. The claim appears to have been spread by individuals wishing to undermine Phillips’s candidacy.

The spokesperson for ANC Deputy President Paul Mashatile, the head of the ANC’s Deployment Committee, Keith Khoza, said that the claim was untrue, and that Mashatile wants the appointment made without undue delay.

Said Khoza:

The first thing is that the Deployment Committee has never met to discuss this issue. Secondly, it is not true that race is a factor in the appointment of the Transnet CEO. And third, the Deputy President wants this appointment to be expedited for the benefit of the sector.

The Transnet board finalised its recommendations for the CEO, the CFO, and the CEO of Transnet Freight Division (TFR) at the end of January. The two frontrunners on the list for group CEO were Phillips and Cargo Carriers CEO Solly Letsoalo, who was Transnet’s chief operating officer (COO) from 2005 to 2009. 

Phillips was head of Transnet Pipelines, the company’s best-run division, when she was asked to act as CEO last September following the sudden departure of Portia Derby. She is the likely first choice of the board.

Russell Baatjies, the acting CEO of TFR, and Hlengiwe Makhathini, the acting CFO, are also likely to be confirmed in their positions. 

Michelle Phillips

Michelle Phillips, acting Transnet group CEO.

Minister of Public Enterprises Pravin Gordhan, who is responsible for taking the recommendation to Cabinet for approval, said on Friday that all that remained to be done was “government processes,” after which an announcement would be made.  

Said Gordhan: 

The Transnet Board is responsible for the recruitment process and has concluded its processes. The next step involves government processes that are yet to be concluded. Following the conclusion of the government processes and a decision by the Cabinet, an announcement will be made.

Gordhan said he would try to expedite the process. Board chairperson Andile Sangqu has previously said he hopes to see an announcement by the end of February. 

READ| Carol Paton | Huge change lies down the line as heads start to roll at Transnet

More recently, the Transnet board has also advertised for a COO, with applications having only just closed. Derby had scrapped the COO position in 2020. It is now seen as essential for the recovery of operations and implementation of the board’s turnaround plan. 

At the same time as recovering and stabilising operations, Transnet needs to navigate a major reform of the rail sector involving splitting rail operations from infrastructure. This underlines the need for both a CEO and a COO. 



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