Prasa train

Photo: GCIS

Prasa gunning for axed executives in massive clean up

Prasa has been plagued by misgovernance and financial troubles, which were flagged by the Auditor-General, but the board is determined to fix things

Prasa train

Photo: GCIS

The Passenger Rail Agency of South Africa (Prasa) is set to institute legal proceedings against two executives who were given the boot recently for overstaying their welcome at the troubled entity.

The rail agency announced over the weekend, that it terminated the contracts of three executives, whose employ unlawfully exceeded the five year limit. This was after Prasa conducted a review of executives’ contracts, finding that some of them should have left years ago.

“All executives at PRASA are employed for a period not exceeding 5years with no expectation for extension of the employment contract. The Board also observed that the executives have been aware at all material times that their employment contracts were for five-year period and not more,”

Prasa’s board

Former Prasa execs in hot water over millions in unauthorised payments

However, according to the rail agency, some of the executives are in trouble for more than just violating its term limit. Much of it has to do with SA Fence & Gate, a company which had received billions worth of government contracts with Prasa, Eskom as well as the Department of Correctional Services.

In addition to staying beyond five years, Prasa’s Group Executive for legal, risk and compliance, Martha Ngoye, whose contract was supposed to be terminated on 31 August 2020, is accused of unlawfully approving a payment of R58m to SA Fence & Gate when she had no authority to do so.

While Chief Operations Officer Nkosinathi Khena is accused of having caused financial losses to Prasa by paying R25 million to the same company, without the proper authorisation. According to the rail agency, Khena reinstated SA Fence & Gate’s contract, despite National Treasury having flagged it. He also reinstated Ngoye, who at the time had been suspended by then Group CEO Lucky Montana for unlawfully approving the R58 million to SA Fence and Gate.

“PRASA will institute legal proceedings against Mr. Khena for financial loss it suffered due to unlawful conduct of Mr. Khena. Mr. Khena has been on suspension and his employment contract was terminated with immediate effect as of 29 January 2021. Mr Khena’s role in unlawfully appointing Werksman firm of attorneys will also receive priority,” Prasa further said.

The CEO of the Prasa Foundation Pearl Munthali, who was on suspension for alleged misconduct, has also been let go as it emerged that her contract also should have been terminated.

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