Cape Town - Minister of Transport Joe Maswanganyi has welcomed the Pretoria High Court judgment that the two contracts entered into by the Passenger Rail Agency of SA (Prasa) with its former chief financial officer (CFO) and consultant Fenton Gastin were invalid and unlawful.
The first contract was hiring him as a CFO. It included about R3.4m as part of a "mutual separation" agreement. The second was a day-to-day consultancy contract given to him by Prasa after he had basically been fired. Gastin must pay back R8.22m to the agency. Former Prasa group CEO Lucky Montana concluded the contracts with Gastin.
Prasa demonstrated to the court that Gastin and Montana maintained a relationship "with the purpose of defrauding the rail agency".