Scopa welcomes decision to dissolve Prasa board
The Standing Committee on Public Accounts (Scopa) has welcomed the dissolution of the Passenger Rail Agency of South Africa's (Prasa's) interim board and the move to place Prasa under administration.
Transport Minister Fikile Mbalula dissolved interim board of the Passenger Rail Agency of South Africa (Prasa) and placed the ailing railway agency under administration on Monday.
Scopa chairperson Mkhuleko Hlengwa says the move is a step in the right direction.
"This arises out of a meeting which was held by Scopa and the board, a hearing in so far as their finances are concerned because in the 2018/19 financial year Prasa received a disclaimed audit outcome which was a regression in fact. Amongst other things is that even the basics of business management were not in play," says Hlengwa.
"The board was unable to meet financial responsibility, there was no minutes, there was no records of resolutions and that was the greatest indication to us why the state of collapse quickened at Prasa."
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Mbalula places Prasa 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 appointed Bongisizwe Mpondo as administrator with immediate effect.
Scopa commended the urgency in which Mbalula dealt with this matter and says it will continue to monitor closely the performance of the administrator Bongisizwe Mpondo.
"We are going to be monitoring the processes that the minister is effecting and those of the administrator who now assumes the responsibility,” says Hlengwa.
He added that Scopa will continue looking at how to fix other ailing state owned enterprises.