Minister wants Montana report

Prasa chief executive Lucky Montana has been implicated in gross mismanagement at the parastatal. Photo: WILLEM LAW

Prasa chief executive Lucky Montana has been implicated in gross mismanagement at the parastatal. Photo: WILLEM LAW

Published Jul 19, 2015

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Johannesburg - Transport Minister Dipuo Peters has demanded a comprehensive report from the Passenger Rail Agency of SA (Prasa) board about the troubles that have engulfed it and which led to the sudden dismissal of the former chief executive, Lucky Montana this week.

Peters met the board on Friday evening after a dramatic day during which both the board and Montana reneged on their promises to reveal the truth about Montana’s axing.

The meeting was confirmed by Peters’ spokesman, Tiyani Rikhotso, who said the minister relied on the board to get sufficient information about Prasa as it represented her as the shareholder.

“As representatives of the shareholder, the minister expects a comprehensive report from the board so we can move forward and the agency can focus on its core mandate of providing rail transport to South Africans,” said Rikhotso.

Independent Media understands the decision to cancel the media briefing was a direct result of Peters’ instruction to the board.

The minister apparently ordered Montana not to proceed with his briefing after he promised to spill the beans on the real reason he was removed from his position before he was due to leave in December.

Rikhotso could not confirm this and referred questions about the briefing to the board.

However, attempts to reach board chairman Popo Molefe on Saturday were unsuccessful.

It is known that Molefe and Montana have been at loggerheads for some time. Insiders claim their stormy relationship got worse after Montana returned from a six-week break he took over the festive season.

Montana claimed this week that the decision to remove him was taken during a meeting that he had to leave because of a family bereavement, and that it was unlawful.

Molefe, on the other hand, said that Montana was in breach of the conditions of his notice, which included that he would not appoint any executives or sign off on any large tenders.

This is believed to have been one of the contentious issues, which Montana regarded as having the potential to paralyse the company as he was stripped of his responsibilities as an accounting officer.

This week is not expected to be any easier for Prasa as Public Protector Thuli Madonsela is expected to release the outcome of a probe.

The agency’s head of engineering services, Daniel Mtimkulu, is also set to face a disciplinary hearing after he was placed on suspension for allegedly falsifying his qualifications.

Allegations of Mtimkulu’s lack of qualifications emerged after revelations that he was in charge of the procurement of the locomotives the agency has bought for about R600 million despite their being higher than required in some parts of the country’s rail network.

The South African Transport and Allied Workers Union (Satawu) in 2012 reported allegations of corruption and tender irregularities at Prasa to Madonsela, which prompted her investigation. The alleged irregularities, according to Satawu, amounted to about R1 billion.

The transport union alleged that Montana was responsible for wasteful expenditure and had violated sections of the Public Finance Management Act.

It also claimed he had approved tenders without following proper procedures and that senior staff stood to benefit from Prasa’s rolling stock fleet renewal programme.

The Sunday Independent

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