Johannesburg - His summary dismissal was a palace coup and was effected by the board in his absence after he had to leave to attend to matters relating to his critically ill uncle, group chief executive of the Passenger Rail Agency of South Africa (Prasa) Lucky Montana said yesterday.
His uncle later died.
“I am disappointed naturally, but this was not unexpected. This has something to do with me and the chairman Popo Molefe. There have been big fights between us over the control of the business,” Montana said.
The board’s decision cuts short by almost four months the six months resignation notice Montana was serving, from June 1.
This was eight months before the end of his contract.
Montana’s swift departure from the parastatal after seven years is yet further evidence of a paralysis at state-owned companies (SOCs) and limp efforts by the government to turn around these entities, including looking to China for guidance.
Crisis-ridden Eskom said earlier this week that no wrongdoing had been found against any of its four executives, including chief executive Tshediso Matona, who were all suspended in March.
This was to allow an independent investigation into matters concerning the SOC.
Montana spoke yesterday as he was attending to his uncle’s funeral arrangements.
“I told the chairman, Popo Molefe, that my name was not on the agenda. I indicated to him that it would be unlawful to discuss me. But the board went ahead and did exactly that,” he added.
The agenda
Montana said the items on the agenda were the controversial locomotives Prasa had bought and the report by public protector Thuli Madonsela into allegations of corruption in procurement against him.
Madonsela has yet to release her report.
Montana said he was considering holding a press conference today to give his side of the story.
Yesterday Prasa said Montana had been released from serving his notice period.
The statement said Prasa was in the process of finding a replacement and Nathi Khena, currently the chief operations officer of Prasa and acting chief executive of Autopax, would serve as acting group chief executive.
The Department of Transport said it had been informed by the Prasa board of its decision to release Montana early from his contract.
“Mr Montana’s contract was due to end at the end of March 2016, but he had requested the board to release him by December 2015. However, the board indicated that should the need arise, Mr Montana could be released earlier.
“The department respects the decision of the board and understands it is carrying out its fiduciary responsibilities. The board has assured the department that it will ensure that the entity remains stable and continues to deliver on its mandate.”
Strife not new
The relationship between Montana and Molefe has been dogged by policy and operational differences between the two since the latter’s appointment in July 2014.
Prasa operates Metrorail, long-distance train service Shosholoza Meyl, and struggling bus company Autopax. The rail agency has a R51 billion contract with French company Alstom to modernise its rail commuter fleet.
Meanwhile, claims that the 13 diesel locomotives acquired by Prasa recently, at a cost of R600 million, are of the wrong height and will damage the existing rail infrastructure have been in the spotlight.
Business Report