Prasa terminates contracts of unlawfully employed high-level executives

The Scandal-ridden Passenger Rail Agency of South Africa (Prasa) has announced that it has terminated three contracts of the employment contracts of its high-level executives who have overstayed at the entity.

The said executives have all been in one way or the other implicated in corrupt activities at Prasa.

The entity said these executives were all aware of their “extended and unlawful stay” but capitalized on the instability at the Board level.

“Pursuant to the review process, it transpired upon analysis of employment contracts of executives that some of them (executives) ought to have left PRASA years ago,” said Prasa in a statement.

“All executives at PRASA are employed for a period not exceeding five years with no expectation for extension of the employment contract.”

These executives are Martha Ngoye, Group Executive for Legal, Risk and Compliance, Nkosinathi Khena, Chief Operations Office,r and Pearl Munthali, Chief Executive Officer of PRASA Foundation.

Ngoye was employed in 2012, she is implicated for unlawfully approving payment of R58m to SA Fence & Gate when she had no authority to do so.

Prasa said it will also be instituting legal proceedings against Khena.

He is said to have reinstated the SA Fence and Gate’s contract knowing of the company’s breach (SA Fence & Gate) which was also brought to his attention by National Treasury in a letter dated 21 April 2016.

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“An amount of R25m was paid to the said company without requisite authority and/or approval,” reads the statement.

Khena, Chief Operations Office reinstated the SA Fence and Gate’s contract knowing of the company’s breach (SA Fence & Gate) which breach was also brought to his attention by National Treasury in a letter dated 21 April 2016.

An amount of R25m was paid to the said company without requisite authority and/or approval.

Mr. Khena was at the time Acting-Group Chief Executive Officer and his unlawful conduct caused PRASA to incur a financial loss. Munthali has also been on suspension for alleged misconduct.

Prasa said that it will follow the recommendations from the Auditor-General to ensure that systems are put in place at the entity and the core business of running passenger rail is restored.

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