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Ex-PRASA Board To Take Minister To Court

Passenger Rail Agency of SA chairman Popo Molefe.
Passenger Rail Agency of SA chairman Popo Molefe.

South African Minister of Transport, Dipuo Peters, announced in parliament on 8 March that the board of directors of the Passenger Rail Agency of South Africa (PRASA) have been relieved of their duties, effective immediately.

The announcement follows the controversy around PRASA CEO, Collins Letswalo’s 350% salary hike, which would see him earning R5.9 million per annum. Letswalo’s generous package came to light following a recent Sunday Times expose on the matter. Letswalo claimed that the board had ratified his salary package. However, the board decided to fire the CEO, a decision that Letswalo has vehemently and publicly opposed.     

This is the latest in a string of controversies that have dogged the PRASA board, among them the R14 million in unaccounted spending noted by the Director General’s 2016 Government Audit Report. The minister’s decision to disband the board relates to what has been termed weak and corrupt management.

On 10 March, the ousted chairman of the board, Popo Molefe, issued Peters with a layer’s letter demanding the she reinstate the board, a letter to which the minister is yet to reply. Molefe has since made it known that he intends to take her to court over the matter.  

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