Transnet CEO Siyabonga Gama was fired from the state-owned entity on Sunday.

Transnet had given Gama 10 days‚ until October 15‚ to show cause why his contract should not be terminated following investigations that implicated him in misconduct and maladministration in the acquisition of locomotives worth R54bn from General Electric‚ Bombardier Transport‚ China South Rail and China North Rail in 2012.

Last week Gama approached the Labour Court in Johannesburg in a bid to stop the board from terminating his contract.

The court on Friday stayed Gama’s application and ordered that his dispute with Transnet be referred to arbitration.

A stay of the application means the court has put a hold on any legal proceedings‚ effectively postponing any ruling on Gama’s application pending the outcome of the arbitration.

However‚ this did not stop Transnet’s board from taking the decision to terminate his employment contract.