By Lehlohonolo Lehana.
In a significant development, Popo Molefe, the former chairperson of Transnet, has announced his resignation from the beleaguered state-owned entity.
The announcement follows resignation of Transnet CEO Portia Derby and Transnet Freight Rail CEO Siza Mzimela, who resigned in the space of less than a week. Transnet CFO Nonkululeko Dlamini also resigned to take up a post at Telkom.
Molefe was appointed as board chairperson in 2018 but was removed as chair by Public Enterprises Minister Pravin Gordhan in July and replaced by Andile Sangqu. Molefe initially retained his position as board member, however.
Public Enterprises has thanked him for his contribution.
Transnet has been facing a steady decline in export volumes, which has been severely affecting its revenue and financial stability. Moreover, the company is also staring at a substantial debt burden that has been hindering its growth prospects.
The declaration of six force majeures in the past two years has added to Transnet’s woes. A force majeure refers to unforeseeable circumstances that prevent a company from fulfilling its contractual obligations. The force majeures indicate the extent of the challenges the company has been facing, and the impact on its operations and performance.
Molefe’s leadership was seen as crucial in navigating the company through the challenging times. Now, his departure is likely to create a leadership vacuum at a time when the company needs strong guidance and direction.