PRASA terminates contracts of three execs

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PRETORIA, SOUTH AFRICA ? JULY 13: The new Prasa trains on July 13, 2015 in Pretoria, South Africa. PRASA insists that the media reports on its new locomotives were incorrect and misleading and that the gap between the contact wire and the roof of the locomotives exceeded the 150mm prescribed in safety regulations. (Photo by Gallo Images / Beeld / Alet Pretorius)
PRETORIA, SOUTH AFRICA ? JULY 13: The new Prasa trains on July 13, 2015 in Pretoria, South Africa. PRASA insists that the media reports on its new locomotives were incorrect and misleading and that the gap between the contact wire and the roof of the locomotives exceeded the 150mm prescribed in safety regulations. (Photo by Gallo Images / Beeld / Alet Pretorius)
  • The Passenger Rail Agency of South Africa announced that it terminated the employment contracts of Martha Ngoye, Nkosinathi Khena and Pearl Munthali.
  • PRASA said it would pursue legal remedies to the irregularities related to a contract awarded to SA Fence & Gate.
  • PRASA said the executives whose contracts were terminated should have left the company years ago.

 


The Passenger Rail Agency of South Africa announced that it terminated the employment contracts of group chief executive for legal, risk and compliance Martha Ngoye, chief operating officer Nkosinathi Khena and PRASA Foundation chief executive officer Pearl Munthali.

PRASA said in a statement released on Saturday that it would pursue legal remedies to the irregularities related to a contract and payment awarded to a company which National Treasury found to be irregular.

The announcement comes as the company said that the executives occupied their relative offices well beyond their allotted period and as the company continues to get to grips with allegations of other past irregularities.

"PRASA Board of Control has embarked on the review of contracts of executives and other senior managers. Pursuant to the review process, it transpired upon analysis of employment contracts of executives that some of them ought to have left PRASA years ago," the statement said.

The statement said all executives at PRASA are employed for a period not exceeding five years and that there is no expectation for extension of the term of duration of this employment contract.

"The Board also observed that the executives have been aware at all material times that their employment contracts were for five-year period and not more. However, it appears the executives capitalized on the instability at the Board level culminating in their extended and unlawful stay at PRASA," the statement added.

The statement said PRASA would go ahead with legal proceedings against Ngoye for unlawfully approving payment of R58m to SA Fence & Gate when she had no authority to do so.

It said Khena, reinstated the SA Fence and Gate's contract knowing of the company’s breach which was brought to his attention by National Treasury in 2016.

The statement said Munthali has been on suspension for alleged misconduct after it became apparent that that her contract at PRASA was meant to have been terminated once its five-year term had expired.

Compiled by Khulekani Magubane.

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