Parliament, Monday, 9 December 2019 – The Portfolio Committee on Transport has noted the shareholder’s decision to put the Passenger Rail Agency of SA (Prasa) under administration.
The Chairperson of the committee, Mr Mosebenzi Zwane, said instability at the agency continued for a long time. The committee is happy with this intervention and hopes that it will bring about the required stability at the agency.
The committee has called on the administrator to put controls in place to stop financial mismanagement at the entity once and for all. Minister Fikile Mbalula announced that he has appointed Mr Bongisizwe Mpondo to be the administrator of Prasa.
He said: “Financial mismanagement at the entity should be the starting point for the administrator. It is concerning that state entities are managed by administrators because that can only signal that entities are not doing what they were initially founded for as a result of governance incapability.”
According to Mr Mbalula, it took long to place the entity under administration, however the fact that this has happened in the end is a good thing.
The committee said the administrator and his team need to hold the fort until the appointment of a skilled and permanent Board at the agency.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON TRANSPORT, MR MOSEBENZI ZWANE.
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