Pretoria - The African National Congress on Tuesday welcomed Transport Minister Fikile Mbalula's decision of placing the troubled Passenger Rail Agency of South Africa (Prasa) under a year-long administration.
"The 54th national conference of the ANC resolved that stabilising the governance and finances of State-Owned Companies (SOC) and ensuring that SOCs play a developmental role is an urgent task and a necessary step in re-igniting growth of the economy," said ANC spokesperson Pule Mabe.
"We further welcome and support his decision to dissolve Prasa's interim board with immediate effect. We share his view that the rail agency has deep-seated challenges that cannot be resolved by merely replacing the interim board with a permanent one. What was needed was a complete overhaul of the agency at management level."
Mabe said the governing party commends Mbalula "for his proactive and decisive" intervention.
"The ANC is confident that this far-reaching decision will provide a permanent solution to the persistent deeply-entrenched challenges that continue to cripple Prasa’s capacity to discharge its mandate effectively over the years," said Mabe.