Board suspends Prasa acting group CEO
• Acting CEO faces disciplinary process for ‘misconduct’
The Prasa board on Monday suspended acting group CEO Collins Letsoalo due to alleged misconduct in awarding himself a salary increase. Despite a fiery news conference in which Letsoalo hit out at the media saying his anti-corruption efforts had created a backlash, Business Day understands the board served a notice letter to Letsoalo on Monday.
The Passenger Rail Authority of SA (Prasa) board has suspended acting group CEO Collins Letsoalo because of alleged misconduct in awarding himself a salary hike.
Business Day understands the board has served Letsoalo with a notice letter on Monday, in which it thanked him for his services and referred him back to the Department of Transport, from which he was seconded.
Business Day also understands that Prasa has moved to suspend the human resources officer who authorised a 350% salary increase for the acting CEO. The board’s decision to remove Letsoalo was based on the salary decision and “poor performance”.
Letsoalo was handed notice of disciplinary processes on Monday, the same day he came out swinging against allegations he had raised his salary irregularly despite being seconded.
It is understood the board decided to remove Letsoalo on Friday. Prasa spokeswoman Nana Zenani confirmed this on Monday, saying the rail agency would issue a statement later.
Letsoalo is accused of having forced through a R5.9m annual package at the agency, going as far as firing employees to do so.
But on Monday, he said he had approval for this after his secondment to the position from the department in July 2016.
“If you have an organisation that has R13.9bn irregular expenditure per annum, you would imagine what would happen when you try to change that,” he said.
Neither Letsoalo nor Prasa has provided a date on which a board resolution was passed on the remuneration issue.
Letsoalo provided a letter from the Prasa board on Monday, stating he would be paid an annualised rate applicable to the position and that he was eligible for benefits.
The letter, signed by the acting CEO on July 6 2016 and signed by board chairman Popo Molefe on July 7 2016, was read out by Letsoalo: “Prasa will pay you at an annualised salary rate applicable to this position and in accordance with the remuneration policy….”
Letsoalo was eligible for the same benefits as senior Prasa officers, the letter read, according to Letsoalo.
Department of Transport spokesman Ishmael Mnisi said on Monday, it had requested clarity from the Prasa board over Letsoalo, adding that, as far as it was concerned, his salary benefits had not changed.
However, Mnisi said the department had not been informed of any decision to remove Letsoalo, who could not be reached to comment on the latest development.
Prasa has been thrust in the spotlight over governance failures that have triggered multiple investigations at the agency.
Relations between Prasa staff and management are also under strain as wage talks continue, with the agency offering 3% and unions demanding between 15% and 20%.
United National Transport Union general secretary Steve Harris said on Monday Letsoalo’s explanation was unconvincing. The union had been struggling to engage with the new management on its concerns, including passenger and staff safety on the rail network.
“Instead of [being] Mr Fix-it, Mr Fix-it is distancing himself from those in the organisation who are skilled and committed to it,” Harris said.
The DA said on Monday it would request that Letsoalo clarify the issue before the standing committee on public accounts. DA transport spokesman Manny de Freitas said his reading of the media conference was that Letsoalo had been “caught out”, which is why he went on the attack.
The party would also seek clarity from Prasa on its compliance with a public protector report, amid general concern about possibly expensive and dragged-out investigations into Prasa by multiple agencies.
LETSOALO IS ACCUSED OF HAVING FORCED THROUGH A R5.9M ANNUAL PACKAGE AT THE AGENCY