Prasa derails salary hike CEO‚ Letsoalo

27 February 2017 - 21:52 By Neo Goba
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Prasa's acting CEO Collins Letsoalo axed
Prasa's acting CEO Collins Letsoalo axed
Image: Gallo Images

Prasa's acting CEO Collins Letsoalo has been shown the door with immediate effect‚ the state owned entity has revealed.

This comes in the wake of reports by the Sunday Times over the weekend that he upped his salary by 350% and demanded a chauffeur and a limitless cellphone package.

"The Passenger Rail Agency of South Africa’s Board of Control (PRASA Board) have unanimously agreed to terminate the secondment of the Acting Group CEO Mr. Collins Letsoalo with immediate effect‚" the agency said in a statement released on Monday evening.

  • IN FULL: Prasa views 350% salary hike 'in a dim light'Here is the full statement by Prasa on the controversial R5.9 million pay packet‚ issued by Nana Zenani‚ Senior Manager Communications‚ PRASA Corporate: 

"The PRASA Board would like to place on record that that no Board resolution was adopted regarding such a salary increase nor payment of an annual salary package of R5.9 million‚" the statement said.

  • Acting Prasa CEO ups his own pay by 350% and demands chauffeurHe was the transport minister's new Mr Fix-It, the man sent to revive South Africa's embattled passenger rail authority. 

"In fact‚ the agreed and official salary remains the R1.3 million annual package which was approved by the Minister of Transport (Dipuo Peters) as the terms of the secondment package which were agreed upon by Mr.

 Letsoalo‚" Prasa added. Just a month after his arrival at the rail agency‚ Letsoalo demanded the same R5.9 million package that former boss Lucky Montana had received.

  •  'Three CEOs at rail agency but no improvement' - Union wants answers from MinisterThe South African Transport and Allied Workers’ Union (SATAWU) will be seeking a meeting with the Minister of Transport "to gain a better understanding of what is happening" at the Passenger Rail Agency of South Africa (Prasa).

Letsoalo was appointed as the state entity's acting CEO in July last year and tasked with saving the embattled organisation after former CEO Lucky Montana resigned amid allegations of irregular and wasteful expenditure related to tenders. However‚ in a media briefing on Monday morning‚ Letsoalo denied ever increasing his salary‚ stating that the board had done so‚ a claim contradicted by the board later the same day.

The agency also said it had already started looking for someone to replace Letsoalo.

- TMG Digital

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