The Portfolio Committee on Transport today received a briefing on challenges at Metrorail and the firing of Acting Group Chief Executive Officer at the Passenger Rail Agency of SA (Prasa).
Prasa delegation leader Mr Williams Steenkamp said the secondment letter the Minister wrote to Mr Collins Letsoalo in July had, in unambiguous terms, stated that the man would be seconded to Prasa at the same grade, salary and benefits accorded to him as an employee at the Department of Transport.
“The letter had been clear that there would be no benefits and Collins signed, and accepted that he had no problems and understood the letter from the minister,” Mr Williams explained.
The Chairperson of the Committee, Ms Dikeledi Magadzi, had earlier commented that the Committee must ask questions on the matter. “Tell us what is happening; the 350% increase, why you allowed that to happen? How did you abdicate you fiduciary duty, as you always had given us an undertaking that you are in control,” she asked.
Mr Letsoalo told the Committee that the board had fired him so many times before and that it was sad that he is being referred to as 350%. “No truth had been said here. The board had always been aware regarding my remuneration. I never calculated my salary,” he said. He then took the Committee through email correspondence with other executive board members.
The Acting Director-General, Mr Mathabatha Mokonyama, clarified that secondment allowance is the difference between the seconded employee’s salary and what the new position offers. “The salary is paid by the Department, and the difference is paid by the entity an employee is seconded to. If the salary of the employee is less or equal to the pay of the employee, there is no benefit,” he said.
Members of the Committee unanimously voiced dissatisfaction with how the Prasa board handled the Acting CEO matter, saying it was embarrassing. Members sought clarity on such matters as the memorandum of agreement when Mr Letsoalo moved to Prasa, senior executives on acting capacities, pending appointments, and the use of media. Members voiced strong opinions on the board and whether it should continue serving, especially in light of failing governance. Clarity was also sought on the Werkmans Attorneys invoice of R127 million and whether this was paid.
Committee Member Mr Leornard Ramatlakane asked if the board was fit for purpose and said he worried the board might destroy Prasa.
Ms Magadzi said Prasa has a mandate to ensure that South Africa’s economy is growing and a social responsibility to ensure that poor people have access to public transport.
“We are disappointed that you are not living up to your mandate. You are expected to uphold issues of governance and steer the trains so that they are not derailed. Each time you come here it is derailment and an indication that you put asunder issues of governance,” she said.
She said the Committee will write to the Minister, and copy the President, highlighting the challenges at Prasa.
“Fiduciary duties are what should occupy the board, as it likes to claim. Be considerate about the public reliant on your service. Where there is dispute, there will never be leadership,” Ms Magadzi cautioned.
Sibongile Maputi
7 March 2017
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