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Economist Azar Jammine says the Transnet group CEO, Portia Derby had no choice but to resign as criticism against state-owned enterprise intensifies, following its failure to perform.
She announced her resignation on Friday. The company’s Group Financial Officer, Nonkululeko Dlamini has also resigned.
Derby will officially leave Transnet at the end of next month, and the chief executive Michelle Phillips will act in her position from the beginning of November.
Transnet has faced backlash from business, especially in the mining sector, for the inefficient logistics and ports services leading to freight being moved to road.
Jammine says Transnet’s inefficiencies have made it a liability for government.
Spotlight on the collapse of Transnet with Professor Jan Havenga:
The country lost over a R100 billion in foregone revenue. It was not being able to transport coal to habours.
This happened at a time when the coal prices were fairly elevated. And coal mining companies were making huge profits and therefore paid huge amounts of tax as well.
In a statement the company says the board has appointed Michelle Phillips as acting Group Chief Executive and Hlengiwe Makhathini as interim Group Financial Officer.