https://www.polity.org.za
Deepening Democracy through Access to Information
Home / Audio / Audio Articles RSS ← Back
Africa|East London Industrial Development Zone|Financial|Industrial|Projects|rail|transport
Africa|East London Industrial Development Zone|Financial|Industrial|Projects|rail|transport
africa|east-london-industrial-development-zone|financial|industrial|projects|rail|transport
Close

Email this article

separate emails by commas, maximum limit of 4 addresses

Sponsored by

Close

Article Enquiry

Mbalula dissolves PRASA interim board, places it under administration

Close

Embed Video

2

Mbalula dissolves PRASA interim board, places it under administration

Transport Minister Fikile Mbalula
Photo by Creamer Media's Dylan Slater
Transport Minister Fikile Mbalula

9th December 2019

By: News24Wire

SAVE THIS ARTICLE      EMAIL THIS ARTICLE

Font size: -+

Transport Minister Fikile Mbalula has dissolved the interim board of the Passenger Rail agency of South Africa (PRASA) and placed the struggling State-owned entity under administration with immediate effect.

Bongisizwe Mpondo has been appointed as its administrator. Mbulala on Monday described Mpondo as an "entrepreneur who has an extensive record in corporate governance and working with public institutions to improve operational efficiencies". He has served on the boards of the East London Industrial Development Zone, South African Express and South African Airways.

Advertisement

Mbalula also announced that secondment of the acting Group CEO, Dr Nkosinathi Sishi, has also been withdrawn with immediate effect.

The passenger rail agency has been rocked allegations of administrative inefficiencies and corruption involving top executives, with former transport minister Blade Nzimande once suggesting that it had for a long time been used as an ATM.

Advertisement

An attempt to turnaround the company has led to suspensions of numerous senior managers implicated in allegations of improper, irregular, corrupt, fruitless and wasteful expenditure.

In October, the Auditor General of South Africa Kimi Makwetu, gave PRASA a disclaimed audit opinion for the 2018/19 financial year, citing the regression on instability of executive management, and a lack of accountability by senior officials to address findings made by the AG over years.

The rail agency has also come under scrutiny for not spending its budget allocation for required capital projects. 

Early this month, Mbalula told members of Parliament that a permanent chief executive officer and other critical executives would be soon be appointed, following months leadership instability. Interim CEO, Sibusiso Sithole, quit in February, after eight months in the job. 

Nzimande appointed the interim board to turn around the ailing rail agency in April 2018.

EMAIL THIS ARTICLE      SAVE THIS ARTICLE

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here

Comment Guidelines

About

Polity.org.za is a product of Creamer Media.
www.creamermedia.co.za

Other Creamer Media Products include:
Engineering News
Mining Weekly
Research Channel Africa

Read more

Subscriptions

We offer a variety of subscriptions to our Magazine, Website, PDF Reports and our photo library.

Subscriptions are available via the Creamer Media Store.

View store

Advertise

Advertising on Polity.org.za is an effective way to build and consolidate a company's profile among clients and prospective clients. Email advertising@creamermedia.co.za

View options
Free daily email newsletter Register Now