Business Day

Board suspends Prasa acting group CEO

• Acting CEO faces disciplina­ry process for ‘misconduct’

- Karl Gernetzky and Natasha Marrian gernetzkyk@businessli­ve.co.za marriann@businessli­ve.co.za

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

 ??  ?? Collins Letsoalo
Collins Letsoalo
 ?? /Sowetan ?? Probed: Collins Letsoalo has been suspended as acting CE of the Passenger Rail Authority of SA over alleged misconduct.
/Sowetan Probed: Collins Letsoalo has been suspended as acting CE of the Passenger Rail Authority of SA over alleged misconduct.

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