GMA His​tory

After careful analysis of the management needs associated with the implementation of Gautrain, including a consideration of the role of the different Provincial and National Departments an​d other stakeholders associated with the Project, it was decided to investigate the possibility of establishing an agency to manage the implementation of Gautrain from Government’s side.

The Gautrain Political Committee approved the investigation, recommended by National Treasury and a management consultant, was appointed to do the study and develop a Business Case. Such a Business Case was finalised and its findings supported by the Political Committee after several meetings with relevant Departments, including National Treasury.

Draft legislation was then developed which was approved by the Provincial Executive Council for submission to the Gauteng Legislature. The Legislature approved the legislation on 6 December 2006 and the Act was promulgated on 19 December 2006.

As indicated in the Business Case and Gautrain Management Agency Act 2006, the Gautrain Management Agency (GMA) provides the necessary capacity to fulfill Province’s contractual obligations and manage its relationship with the Concessionaire and with all other stakeholders. In the Business Case the different institutional alternatives were discussed including managing the project through a component (e.g. Chief Directorate) within the relevant existing Provincial Government Department, the establishment of a dedicated unit or a new dedicated department within Provincial Government and thirdly the establishment of a Provincial Public Entity. The Business Case came to the conclusion that of these three options, a public entity provides the most appropriate vehicle to ensure that all of Gautrain’s objectives and other considerations are addressed and incorporated into the implementation and operation of the Project. It goes on to say that ultimately the rationale for an autonomous Agency is based on the need to manage Government’s significant financial and other risks in the project, both during the time of implementation and operation.

The objectives of the GMA are provided in Chapter 1 of the GMA Act. Overall it is to manage, co-ordinate and oversee the Project in the interest of government as a whole and the Province in particular. It includes matters such as managing the relationship between the Province and the Concessionaire in terms of the Concession Agreement, managing assets and finances, liaising with all relevant Government structures and interested parties promoting the Project, promoting BBBEE, and integrating the Project with other transport services. The functions and powers of the GMA are described in the Act.

The GMA first Board members were appointed in 2007/2008 and became operational in January 2009. The GMA Board acts as the custodian for good corporate governance for the GMA. It provides strategic direction to the GMA and assumes ultimate accountability and responsibility for the performance and affairs of the GMA. The Board has also developed performance objectives to enable it to measure the GMA’s performance and progress in attaining the set goals, objectives and targets as set out in the Strategic Plan and the Annual Performance Plan.

In terms of the requirements of the GMA Act, the Board should consist of the CEO (who is a member by virtue of his office) and a minimum of five, maximum of nine, other members all appointed by the MEC for Roads and Transport.

The term of appointment for the GMA Board Members is three years, after which they become eligible for re-appointment, provided that a Member does not serve more than two terms.