Popo Molefe to ask courts for help as Prasa board is dissolved

Passenger Rail Agency of South Africa board chairman Popo Molefe is shocked at the dissolution of the board by Parliament on Wednesday‚ after it ousted disgraced Acting CEO Collins Letsoalo.

Molefe said he had not been informed of the board's dissolution by the Minister of Transport‚ Dipuo Peters‚ but rather had heard of it through media reports.

"Prior to the reports the Minister had requested the Board to submit a report relating to the irregular salary increment of Collins Letsoalo whom she had seconded to Prasa from the Department of Transport. We had submitted the report as requested. To date‚ we are yet to receive a response from the Minister. It therefore comes as a surprise to us that the Minister would have taken such a decision without notice to members of the Board nor followed due process.

• Inquiry to be launched into Prasa after board dissolvedThe Portfolio Committee on Transport has resolved to establish an inquiry into governance challenges at the Passenger Rail Agency of South Africa (Prasa). 

"I believe that the decision of the Minister is reviewable and hereby give notice that I will seek re-course in the courts."

Molefe charged that the Minister's action "imperils ongoing investigations into R14 billion of irregular expenditure; actions taken by this Board in the courts to recoup losses up to R7 billion; criminal investigations that involve suspected corruption‚ fraud and money laundering that involves several billions of Rand; and the turn-around in Prasa operations."

He said the action impugned his reputation and dignity. "I am considering my options in this regard."

• BREAKING: Prasa board firedThe Passenger Rail Agency of South Africa's board was dissolved in Parliament on Wednesday. 

Molefe said further that he had written to the Speaker of Parliament‚ Baleke Mbete‚ asking her to institute a Parliamentary Inquiry into Prasa operations and governance.

"I hope she grants this request as I intend to account fully to Parliament and the people of South Africa."

Letsoalo was axed after a Sunday Times report detailing how he demanded a 350% salary increase - taking his earnings to R5.9 million a year - and a chauffeur after being seconded to Prasa from the Department of Transport with the goal of fixing the embattled rail entity.

A defiant Letsoalo claimed at a press conference that the board had confirmed his increase. But the board hit back‚ saying that it had not authorised his pay hike and viewed the controversy over his pay “in a dim light”.

Since yesterday Members of Parliament had called for the board to be removed after it was hauled over the coals for being “corrupt” and their handling of Letsoalo's ouster from Prasa.

The Portfolio Committee on Transport on Wednesday resolved to establish an inquiry into Prasa's governance challenges.

The chairperson of the Committee‚ Dikeledi Magadzi‚ said the resolution was not taken lightly by the committee.

“After two days of deliberations‚ the Committee still did not have a sense of whether Prasa will be saved. It is important that Prasa works if we are to grow the economy and deliver on the mandate to get poor South Africans to work‚” Magadzi said.

Magadzi said there was no sense that the board was in control of anything.

“It does not seem that there are controls at the entity to ensure good governance in line with legislation. That said‚ the Committee is of the view that the entity could still be saved‚” she said.