Former Passenger Rail Agency of South Africa (Prasa) board chairperson Popo Molefe has warned Transport Minister Dipuo Peters that if she doesn’t reinstate the board, she risks being seen as unwilling to fight corruption.
In an urgent application filed in the Pretoria High Court, Molefe stated that if Peters, who dissolved the board on March 8, doesn’t reinstate the board members, “a perception may and likely will exist that the minister is attempting to prevent investigations being concluded into corruption”.
He further stated there would also be a perception that she is punishing the board for removing controversial former acting chief executive Collins Letsoalo.
The board removed Letsoalo from his position earlier this month after he had increased his salary by at least 350 percent to R5.9 million, the same amount that was earned by former chief executive officer Lucky Montana.
When the parastatal’s acting head of human resources resisted giving him the raise, Letsoalo, who was seconded by Peters to Prasa, removed him from the position.
A few days later, Peters dissolved the board.
Molefe, in his court papers, said there was no legal justification for the removal of the board.
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“The minister failed to provide any basis (let alone a reasonable and justifiable one) for taking the drastic step of wholesale removal of the applicants and effective decapitation of the governance of Prasa... The minister cannot simply remove because she wants to do so. The failure to have any lawful or rational reasons is fatal to the relevant decisions to remove,” the papers state.
Molefe is trying to block Peters from appointing a new board and instead wants her to reinstate the old one, stating that otherwise this will have negative implications on investigations of maladministration and corruption in the organisation.
He states the board had resolved in August last year to not extend Letsoalo’s appointment, but Peters convinced them to keep him on until a permanent group chief executive officer could be appointed.
"The board did not wish to accede to this extension of Letsoalo’s tenure and had sought an audience with the minister in this regard, which was not forthcoming.”
Molefe further stated that if the board is not reinstated this will have negative implications on investigations that Prasa and law firm Werkmans have been undertaking regarding corruption dating as far back as 2008. The investigations are expected to be completed by July. Some of the investigations that could be jeopardised include civil proceedings to review and set aside unlawful contracts worth R7billion, which are expected in court in May and June.
He stated further that Prasa would also not be able to recoup money lost to corruption from employees.
He said what the state-owned entity should be concentrating on is the appointment of a permanent chief executive officer. Interviews for this position are supposed to be conducted on Thursday (March 16) and directors need to oversee it, Molefe argued.
In the court papers, Molefe made reference to the fact that Peters had not responded to letters from the board on why they had been axed.
“Do we live in a society where government officials may use their powers recklessly or with a clear ulterior motive, with absolute disregard for the law or the effect of their conduct on the Republic?” Molefe asked.