The Standing Committee on Public Accounts (SCOPA) yesterday held a hearing with the Passenger Rail Agency of South Africa (PRASA) on its 2021/22 annual report, financial statements, investigations, as well as fruitless and wasteful expenditure. PRASA has received a disclaimed audit outcome for four consecutive years.
Among several issues arising from PRASA’s presentation, the committee was concerned about the lack of consequence management for hiring ghost employees at PRASA, after it heard that after launching Operation Ziveze, 1 159 employees suddenly resigned in one month.
SCOPA Member Mr Alf Lees asked for an update on the ghost employees discovered at PRASA. “On the 29 March 2022, we were told there were 3 000 ghost employees. What has been done? Have they been dismissed? Who are they?” he asked. In a similar vein, SCOPA Chairperson Mr Mkhuleko Hlengwa asked PRASA how a ghost resigns and who processes these resignations.
The Chairperson of the PRASA Board, Mr Leonard Ramatlakane, told SCOPA that the agency is saving R20 million a month in salaries since the resignation of those 1 159 employees. “We said its suspect that on one scoop, 1 159 employees resign. We were also not provided with a resignation report or a letter on these 1 159 employees,” he said.
Mr Ramatlakane said PRASA referred the matter to the Special Investigating Unit (SIU) to investigate the matter. “The SIU has agreed that they will follow the money and look at who has been paid, who received the money out of this ghost workers saga,” he said.
Mr Hlengwa pointed out that SCOPA had requested an update on this matter in March 2022 when it met with PRASA, but this information has not reached the committee. “My expectations on Operation Ziveze is that you would be presenting a progress report on verification. Now it’s by chance that you have had resignations.”
The Minister of Transport, Mr Fikile Mbalula said he has been engaging with the Board on the issue of vacancies. Minister Mbalula said PRASA doesn’t have a human resources executive and this has led to a lot of corruption. Even in procurement there is a vacancy at executive level. “I said advertise this position because the biggest problem of PRASA is SCM. Employ people who are capable, educated, experienced and put them in that post. Clean the place,” he said.
SCOPA has requested PRASA to submit a detailed written report on the issue of ghost employees, including a timeline. The committee has also requested PRASA to submit monthly progress reports on all other matters relating to expenditure, investigations, annual report and financial statements.
Faith Ndenze
30 November 2022
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