The Passenger Rail Agency of SA (Prasa) board has vowed to deal with employees implicated in irregularities‚ and wasteful and fruitless expenditure as contained in the Public Protector Thuli Madonsela’s report. Board chairperson Popo Molefe told journalists in Pretoria on Thursday that management was applying the disciplinary code of the agency and announced possible legal action to recoup some of the monies lost.“Regarding contracts identified or suspected to have been irregularly awarded‚ the board directed the acting group chief executive officer [Nathi Khena] to take appropriate steps to suspend all such contracts and to engage where appropriate with the relevant parties‚” he said.Madonsela's “Derailed” report probed 32 complaints against Prasa‚ the majority of them relating to maladministration in tenders totalling R2.8-billion.Madonsela found 19 of them were substantiated.Six of these damning findings implicated axed group CEO Lucky Montana‚ who has vowed to approach the court to challenge the contents of the report.Another three would be the subject of future reports.Molefe said that‚ prior to the release of the Public Protector's report‚ the board had already commissioned an independent investigation led by Werksmans Attorneys into several irregularities identified by the Auditor-General in his draft report.He said that Prasa's internal audit was instructed to review all payments over R10-million made from April 1 last year to check for irregular‚ wasteful and fruitless expenditure.“The internal audit was also directed to conduct probity checks on all future payments and procurements above R10-million‚” Molefe said.He said this was all part of the cleaning up of the parastatal and “enhancing good corporate governance”.Molefe said that Prasa was also in the process of reviewing the qualifications of all employees‚ a process he said was triggered by the agency's chief engineer Daniel Mtimkulu‚ who resigned after admitting to not be in possession of qualifications he claimed to have.He added that this was not the only case as another employee who claimed to have had a doctorate had resigned after confessing. – The Times..