Public Enterprises Minister, Mr Malusi Gigaba has decided to reduce the number of Transnet SOC Ltd’s Board of Directors from the current 18 to 14 members including the Group Chief Executive and the Chief Financial Officer – the two executives who sit on the Board. The decision follows extensive consultation with the Chairman of the Board, Mr Mafika Mkwanazi in the context of Minister's consultations with Chairpersons of state owned companies.
The Minister took the decision to ensure improved efficiencies, coordination and decision-making in the affairs of the Board.
This is in line with the Shareholder’s commitment to continuously engage with the leadership of state-owned companies within the portfolio of the Department of Public Enterprises. These engagements will ensure that best practices and lessons are shared. In this regard, the benefits of a smaller board, such as that of Eskom, were found to be worthy of replication. This is also in tandem with views echoed in King III codes on good corporate governance, which favour a move towards leaner boards.
As a consequence of the decision, the Minister has retired Ms Nolwazi Gcaba, Mr Peter Moyo, Mr Don Mkhwanazi and Ms Tembakazi Mnyaka from the Board of Directors of Transnet. This decision is informed by, amongst others, the length of service, the Board’s skills mix and gender considerations.
The Minister is greatly indebted to the diligence, selfless service and intellectual contribution by these colleagues. They have contributed greatly to Transnet's stability and improved performance since their appointments. They have served both Transnet and the country in an exemplary fashion and the Minister has been honoured to collaborate with them. He is confident that South Africa will continue to benefit from their wise counsel and vast experience.