South Africa’s state-owned ports and rail company will dismiss Chief Executive Officer Siyabonga Gama from the post, two people familiar with the matter said.

Transnet SOC Ltd.’s board made the decision to remove Gama because of a breakdown in its relationship with him, the people said, asking not to be identified because the information hasn’t been made public.

President Cyril Ramaphosa’s administration is clamping down on graft and tackling poor management at state-owned companies, which are cash-strapped and pose an increasing risk to the nation’s finances. Executives at state power utility Eskom Holdings SOC Ltd. and South African Airways are among those to have been replaced.

Transnet moved to suspend Gama and two other executives last month, amid a probe into their roles in procurement contracts.

The company squandered billions of rand and broke regulations when it altered the terms of a deal to buy 1,064 new locomotives, an investigation by law firm Werksmans Attorneys found. A separate National Treasury-commissioned report found Transnet paid 509 million rand ($36 million) more for 100 locomotives after switching a supply contract to a Chinese rail company from Mitsui & Co. of Japan.

Transnet spokesman Molatwane Likhethe didn’t immediately respond to calls and mobile-phone text messages seeking comment, while Nompumelelo Kunene, Transnet’s external-communication officer, said a statement will be issued later on Thursday, without giving further details.