Mbalula places Prasa under administration
Transport Minister Fikile Mbalula has dissolved interim board of the Passenger Rail Agency of South Africa (Prasa) and placed the ailing railway agency under administration.
Mbalula made the announcement at a media briefing in Johannesburg on Monday.
The decision to place Prasa under administration comes on the back of Auditor Genera Kimi Makwetu giving it a disclaimed audit opinion for the 2018/19 financial year.
Makwetu cited the regression on instability of executive management, and a lack of accountability by senior officials to address his findings.
Mbalula said the intervention will continue for twelve months, after which a permanent board will be appointed.
"We will ensure that the process to recruit a permanent board is initiated at least six months into the tenure of the administrator to ensure a seamless transition at the end of the intervention.”
Mbalula has appointed Bongisizwe Mpondo as administrator with immediate effect.
"I do not doubt that Mpondo has the right credentials to tackle the challenge of turning around Prasa,” he said.
Listen below: