Prasa fires acting group CEO over 350% pay hike

Acting Prasa chief executive Collins Letsoalo File picture: Masi Losi/Independent Media

Acting Prasa chief executive Collins Letsoalo File picture: Masi Losi/Independent Media

Published Feb 27, 2017

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The Passenger Rail Agency of South Africa (Prasa) has fired the acting group chief executive, Collins Letsoalo, with immediate effect following a unanimous board decision to terminate his secondment at the rail agency.

This comes after the controversy behind the remuneration package of Letsoalo, in which he is accused of hiking his salary by 350%, from R1.3 million to R5.9m, demanding a chauffeur-driven vehicle and a company cellphone with unlimited calls, just like former Prasa boss Lucky Montana.

Letsoalo was seconded to Prasa by Transport Minister Dipuo Peters in July last year, to turn the agency’s fortunes around after it bled R13.9 billion because of irregular contracts.

The board of Prasa said it viewed these allegations against Letsoalo “in a dim light”.

“The Prasa board would like to place on record that no board resolution was adopted regarding such a salary increase nor payment of an annual salary package of R5.9 million,” Prasa said.

“In fact, the agreed and official salary remains the R1.3m annual package which was approved by the minister of transport as the terms of the secondment package which were agreed upon by Mr Letsoalo.”

Letsoalo called a media briefing earlier yesterday where he produced a letter of his appointment and e-mail correspondence with general manager of remuneration and benefits Bongani Nkomo to support his argument that he was entitled to all benefits of the chief executive.

Prasa said all matters pertaining to the alleged authorisation of the salary hike by the chairman of the board in a letter was part of the considerations on the extent of Letsoalo’s added duties at Prasa during his secondment period. “This letter in no way gave an automatic authorisation of a salary increase without following due process as clearly stated in the letter from the chairman of the board,” Prasa said.

“The Prasa remuneration policy on acting positions provides for an increase not exceeding 12% of the package on the acting position.”

The agency said the process of appointing a permanent group chief executive was under way, with adverts in Sunday papers.

African News Agency

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