Johannesburg - Axed Passenger Rail Agency of South Africa (Prasa) chief executive Lucky Montana has declared war on Thuli Madonsela after her report on Monday that Prasa had blown billions under his leadership.
Speaking to The Star on Tuesday morning, he said: “I’ve looked at the report and I’m convinced I should reject it in its entirety.”
Madonsela’s findings, he said, were “factually incorrect”. He vowed to fight the report in court.
“I have made mistakes at Prasa just like anyone else, but I dispute the findings. The public protector doesn’t have to agree with the way Prasa is run; it doesn’t mean it’s corrupt,” he said.
He said the public protector was not a judge. “There is nothing other than drama that she is creating with this report.”
Montana denied allegations that he had hired his uncle. “No uncle of mine ever worked for Prasa. In fact, I recently buried my uncle.”
Madonsela's report found that more than R2 billion had been misappropriated.
Montana has been identified in six of the 19 examples where tender and financial impropriety were mentioned in Madonsela’s report.
The report also found Montana had made improper appointments and improperly terminated employee contracts during his tenure, costing the state-owned enterprise millions of rand.
In allegations where Montana improperly terminated contracts, Madonsela found the claims to be merited.
“The allegation that Mr Montana improperly terminated the services of five of its executives mentioned in this report is substantiated. Mr Montana terminated their services during 2008 to 2013 without following proper procedure,” said Madonsela during a media briefing on Monday.
This resulted in the CCMA overturning some of the terminations and others being settled out of court at significant cost to Prasa.
“Prasa subsequently paid labour dispute settlements amounting to R3 816 735, principally due to procedural irregularities in the disciplinary steps taken against involved officials, which payments can be said to constitute fruitless and wasteful expenditure as envisaged in section 38 of the PFMA (Public Finance Management Act),” said Madonsela.
She also found Montana improperly suspended employees, resulting in labour dispute settlements amounting to millions of rand.
The Prasa investigation followed 37 complaints lodged by the South African Transport and Allied Workers Union in 2012. The complaints were later pursued by the National Transport Movement.
“The conduct of Mr Montana accordingly constitutes maladministration and improper conduct,” she said.
After announcing her findings, Madonsela called on Transport Minister Dipuo Peters to act.
“The minister of transport is to ensure that the Prasa board considers the acts of maladministration and improper conduct referred to in this report and takes appropriate disciplinary action against the officials of Prasa in respect of their conduct referred to therein,” Madonsela said.
THE STAR