State-owned Transnet has reinstated Siyabonga Gama, the former CEO of its freight rail busines, to the group's executive committee, after a review of his dismissal for “governance breaches”.

Gama was fired last year after being found guilty of misconduct.

He will return to the company with effect from February 23 and will be based in the chairperson's office, until new CEO Brian Molefe has finalised the composition of his executive team.

The reinstatement is subject to a final written warning “given the fact that Mr Gama was not found guilty of corruption and/or dishonesty,” the firm said late on Wednesday.

“The board is of the view that such an agreement is in the best interest of the company,” Transnet said in a statement.

“The settlement brings finality to this matter and would bring to an end the harmful publicity surrounding it.”

Chairperson Mafika Mkhwanazi has been tasked with handling “the Gama matter to its conclusion”, including improving relations between Gama, other members of the executive committee and the rest of Transnet's employees.

“Mr Gama has affirmed his support to the management of Transnet under the leadership of the new group chief executive, Mr Brian Molefe,” the group added.