AS IT HAPPENED: Minister Peters appoints Prasa interim board

2017-03-13 11:30

After dissolving the Prasa board amid claims of mismanagement, Transport Minister Dipuo Peters has in a briefing named the members who will make up the interim board, among them former CEO of Sanral Nazir Alli.

Transport Minister Dipuo Peters
LIVE NEWS FEED

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Last Updated at 14:31
13 Mar 11:40

And with that, the briefing ends. The newly-appointed Prasa interim board will be starting from today. 



13 Mar 11:37

The eligibility of some of the interim board members is brought into question, particularly Nazir Alli.

Peters: "I did indicate that we have put these names, or these people together, on the basis of their expertise and knowledge that they have. I don't know why it should be an issue. 

"Mr Alli was an executive board member at SANRAL for many years and did a good job. He is on the board because of his technical expertise. 

"Remember, this is an interim board." 


13 Mar 11:32

Peters: "The absence of a board in itself would have ended up as an audit query. It is important that we comply to the laws of this country and ensure that there is stability." 


13 Mar 11:30

13 Mar 11:28

The entire Prasa interim board, as announced by Minister Peters. 


13 Mar 11:26

Peters says the fight against corruption is not an individual fight.

Peters: "There is no intention or no plan to hide corruption by the ANC." 

"ANC must take people to the cleaners."  



13 Mar 11:25

13 Mar 11:24

13 Mar 11:23

RELATED: 

A letter from the lawyers representing the fired Prasa board members saying the matter is before the courts and she cannot appoint an interim board during this time. 

Dear Minister Peters and Department of Transport officials

We refer to the media statement below and the media briefing scheduled forMonday, 13 March 2017.

You will be aware that our clients - primarily comprising the directors theMinister dismissed from PRASA on or about 8 March 2017 - have served legalpapers on you yesterday seeking, among other things, an interdict to preventthe appointment of any "interim" or replacement Board of Control to PRASA.  

Any action by the Minister (and any assistance in this regard by Departmentofficials) now to appoint any such interim or replacement Board will be malafide, will unlawfully pre-empt the judgment and order of the Court andconstitutes constructive contempt of court.

Our clients call on you to desist from purporting to appoint or appointingany interim or replacement PRASA or any directors to the PRASA Board insubstitution of our clients, and from any assistance in respect of any suchactions.  In the event of such unlawful behaviour - at Monday's briefing orotherwise - our clients reserve their rights to alert the Court and seekcontempt of Court and punitive costs orders against you.  

Yours faithfully

Vlad Movshovich

Partner

Webber Wentzel 


13 Mar 11:19

13 Mar 11:18
Peters says she doesn't believe the ongoing investigations will be jeopardised by the appointment of the interim board. It has nothing to do with "protecting" Letsoalo, otherwise she would have sacked board and kept him. 

13 Mar 11:14

13 Mar 11:11

13 Mar 11:09

13 Mar 11:08

13 Mar 11:07

Former CEO of Sanral Nazir Alli has been named new chair of the Prasa interim board announced by Minister Peters. 


13 Mar 11:05

13 Mar 11:03

Having Letsoalo removed shouldn't be seen as any wrongdoing on his part, says Peters. "Letsoalo was recalled to restore stability at Prasa...not a reflection of poor performance."


13 Mar 11:01

13 Mar 11:00

Peters says she expressed her concern over the lengthy investigation by Werksman attorneys. 

Peters: "It is falsely misconstrued that we intend to sweep issues under the carpet." 

Says investigation by Werksman attorneys has so far cost R127m. Investigation is still ongoing. 


13 Mar 10:56

13 Mar 10:56

Peters on the appointment of Mr Letsoalo as acting GCEO: "It is unfortunate my letter of secondment became a subject of deliberate misrepresentation." 


13 Mar 10:54

13 Mar 10:53

Peters starts by reminding everyone that transport is the heartbeat of development. Peters also touches on the role of her department and Prasa. According to Peters, Prasa in 2009 heralded a new era in passenger transport. 


13 Mar 10:50

13 Mar 10:49

The minister has just arrived, and the briefing has begun. 


13 Mar 10:47

According to officials, the briefing will now begin at 11:00. Transport Minister Dipuo Peters is en route to the briefing. 


13 Mar 10:28

13 Mar 10:25

13 Mar 10:15

13 Mar 10:15

Molefe files urgent application over Prasa Board dissolution 

Former Prasa chairperson Popo Molefe has filed an urgent application to the High Court in Johannesburg to have the decision to dissolve the board of the Passenger Rail Agency of South Africa by the Minister of Transport set aside.

Molefe, along with the other fired directors of Prasa, have approached the court to review or declare the board's dissolution unlawful, reinstate them to their former positions, and prevent an interim board from being appointed.

According to Molefe’s founding affidavit, filed on Saturday, the decision to remove the board members and the notices of removal are "plainly unlawful and must be set aside" to prevent irremediable damage, uphold legality and vindicate public interest.

The board would as a "logical consequence" be reinstated and Transport Minister Dipuo Peters' "blatant unlawful conduct and failure to reverse course or engage with the applicants timeously" warranted a punitive costs order, Molefe’s court papers read. 


13 Mar 10:15

Montana lashes out at Molefe 

Former Passenger Rail Agency of SA (Prasa) chief executive officer (CEO) Lucky Montana is back with a bang, and has levelled some fairly explosive accusations against Popo Molefe, the chairperson of Prasa.

Montana hit out at Molefe in an application seeking to assist the court in a case brought by Prasa against Swifambo Rail Leasing relating to a R3.5bn contract.

One of the claims he makes against Molefe is that the board chair will gain financially from the investigation by Werksmans Attorneys into tender fraud at Prasa.

Montana said Molefe had a "vendetta" against him and was taking a cheap shot by alleging he was corrupt.

The assault against Molefe comes on the heels of a report that Prasa paid R14.3m to an attorney who said he was a fundraiser for the ANC. 


13 Mar 10:15

ICYMI: 

Molefe: Peters fired Prasa board to protect Letsoalo 

Axed Prasa board chairperson Popo Molefe believes Transport Minister Dipuo Peters decision to fire the board is likely an attempt to protect former acting CEO Collins Letsoalo.

Following the sudden dissolution of the board, Molefe told ANN7 he was not officially informed that he was fired. However, he noted that other board members confirmed receiving letters from Peters advising them that their services have been terminated.

"We will challenge it to ensure that we defend our rights as directors, our integrity and reputation." 

He said the board would like to believe that it exercised its fiduciary duties and actively worked to clamp down on corruption.

"We were dealing with these matters, the irregularities, corruption... [it] amounts to billions of rands of the taxpayers' money." 


13 Mar 10:15

ICYMI: 

Prasa board dissolved with immediate effect 

Transport Minister Dipuo Peters on Wednesday dissolved the board of the Passenger Rail Agency (Prasa) with immediate effect, according to acting director general of transport Mathabatha Mokonyama.

He was part of a delegation consisting of the Department of Transport and Prasa board members and management who briefed Parliament on issues plaguing the state-owned entity.

Mokonyama said Peters will institute “interim measures”, which will be announced at a later stage according to news broadcaster eNCA.

Peters through a letter to Mokonyama cited a number of reasons for her decision to dismiss the board, including issues that emerged from the portfolio committee on transport. 

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