SPOORNET CEO DEMOTED.

(From SAPA (South African Press Association))

(REPEATS FOR THOSE NEEDING) Spoornet's CEO Zandile Jakavula and the company's executive manager for asset protection, Chain Vilakazi, have been demoted, Transnet said on Thursday. This follows a disciplinary hearing into allegations that the two acted inappropriately when Jakavula purchased a Spoornet-owned house in Port Alfred in the Eastern Cape. Transnet group CEO Mafika Mkwanazi said the two had been issued with a final written warning and would also sacrifice 50 percent of their incentive bonuses for 2001/2002. He said Jakavula would return the holiday home, on the banks of the Kowie River, to Spoornet at no cost and pay three months interest on the R365000 borrowed from the rail utility to acquire the house earlier this year. The salaries of the two have also been fixed for a year, Mkwanazi said. Jakavula was suspended earlier this year with full pay pending the outcome of the internal inquiry into the allegations. He was accused of acting inappropriately when he bought the house at a price far less than its market value. Jakavula reportedly paid R83000 for the house, while estate agents estimated that the property could have been worth R250000. The riverside home was reportedly renovated at a cost of R363000 with Spoornet funds. Jakavula has been offered the job of general manager of human resources while Vilakazi has been demoted to a senior manager position. Mkwanazi said the two had until August 15 to accept the sanctions in ...