Prasa board goes to court

2017-03-16 05:22
Popo Molefe (File, Netwerk24)

Popo Molefe (File, Netwerk24)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Johannesburg - Former Passenger Rail Agency of South Africa (Prasa) board members are heading to the High Court in Pretoria to have the board's dissolution set aside on Thursday.

Former Prasa board chairperson Popo Molefe filed an urgent application for the court to declare the board's dissolution unlawful, reinstate the board members to their former positions, and prevent an interim board from being appointed.

Meanwhile ousted acting group CEO Collins Letsoalo has asked to join the application as a respondent. Letsoalo said the board had made false allegations in the founding affidavit which seek to tarnish his reputation.

He urged the board to consider postponing its court appearance to allow him time to file his own court papers.

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.

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.

R14bn in irregular expenditure

"The public's interest in Prasa and the make-up of the board and the need for proper corporate governance is underscored by the investigations conducted by the offices of the Public Protector and the report of the Auditor General in 2015, which uncovered irregular expenditure at Prasa.

"As a result of these findings, and in terms of its obligations under the [Public Finance and Management Act], the relevant directors conducted an internal investigation in Prasa," the court papers stated.

"This investigation has, to date, uncovered the true extent of fruitless, wasteful and irregular expenditure at Prasa totalling at least approximately R14bn."

Following the resignation of Lucky Montana as group chief executive officer in July 2015, an acting group chief executive officer (GCEO) was appointed and the directors in February 2016 submitted a list of preferred candidates to the minister, the affidavit reads.  

It was believed that a permanent GCEO would help stabilise the agency and improve performance, but despite attempts, the minister would not engage with the board, Molefe states.

Peters instated an interim board on Monday against the advice of Molefe's lawyers.

The interim board is chaired by former Sanral CEO Nazir Ali.

Read more on:    prasa  |  collins letsoalo  |  dipuo peters  |  popo molefe

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
NEXT ON NEWS24X

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.