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·      Transnet applied for leave to appeal in the North Gauteng High Court to disengage Gijima Holdings from contract ·      The court found that Transnet has no prospects of success in the Supreme Court of Apeal ·      Gijima Holding refused to had over IT data to Transnet because it had no plan in place

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Sizwe sama Yende

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Global entrepreneur Robert Gumede’s company has won again in its legal battle with Transnet, which demanded that it immediately leaves an IT services data contract after its expiry.

Transnet applied for leave to appeal North Gauteng High Court acting judge Jacques Minnaar’s judgment on October 16 that turned down Transnet’s urgent application to see the back Gijima Holdings since its five-year contract, which commenced in 2018, had expired in November 2024.

The contract was extended until June 2025, and Transnet then attempted to force Gijima to disengage with immediate effect, but the IT company refused and pointed out Transnet’s weaknesses. 

Minaar found that Transnet was not ready to take over from Gijima because it did not have a transition plan, lacked additional ICT resources, and admittedly depended on third party procurement.

According to the R1.5 billion contract, Gijima was responsible for IT services that involve the entire country's rail network, running container and wagon services over thousands of kilometres of rail with hundreds of depots and shunting yards.

In denying Transnet’s application for leave to appeal on Friday, Minnaar said: “Applying the test for leave to appeal, I am not convinced that a Court of Appeal could reasonably conclude differently from the conclusion reached by me. I cannot find that Transnet has prospects of success that could lead another court to reach a different conclusion, or that the case raises issues of significant importance.”

Transnet had cited 17 grounds on which it believed Minnaar erred when he passed a judgement in favour of Gijima. 

The company forged ahead with its case despite one of its witnesses having testified that Transnet was not ready to take over from Gijima when it lodged an urgent application in June.

The witness made it clear that Microsoft, as Transnet's transition partner, still had to conduct an essential assessment and predicted it would take six to eight weeks.

Minaar said that he, under the Superior Courts Act, ought to enquire whether there was a compelling reason for the appeal to be heard.

“Other considerations beyond the above-mentioned statutory

provisions would include where the material case is of substantial importance to the appellant, and where the decision sought to be appealed against involves an important question of law or where required by the interests of justice,” the judge said.

Minaar dismissed Transnet’s application with costs. Transnet's spokesperson, Ayanda Shezi, said: "Transnet is studying the judgment and will make any further pronouncements in due course."

The Transnet contract was problematic for Gijima from the beginning when some of the board members back in 2017 wanted to sway decisions in favour of a Gupta family-linked company. 

Gijima went to the Johannesburg High Court when Transnet awarded the contract to T-Systems SA (TSSA) even though Gijima’s had submitted a tender to provide the services at R500 million less than TSSA.

Gijima won the case and later purchased TSSA in 2020 in a deal worth R600 million.