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Montana says govt to review PRASA’s decision to cut his contract short

Former PRASA CEO Lucky Montana

Former PRASA CEO Lucky Montana

Photo by Duane Daws

17th July 2015

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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Shortly after the Passenger Rail Agency of South Africa’s (PRASA’s) eleventh-hour cancellation of its anticipated press conference surrounding the exit of Lucky Montana, the ousted CEO on Friday said the cutting short of his notice period was “disappointing but not unexpected”.

However, speaking to media in Rosebank, Montana did not shed any further light on the details surrounding what he called PRASA’s “grossly unfair and unjust” decision.

“This decision remains unlawful. I will never accept it,” he said.

He could also not be drawn to unveil the details surrounding PRASA’s move, pending government’s review and reflection on the situation over the weekend, he said.

Montana, however, said his resolve remained unshaken and that he was determined to continue serving South Africa.

“I am not cancelling [the press conference] but I am postponing it – in due course I will provide all the details and answer all your questions,” he told media following a heartfelt speech paying tribute to PRASA workers and his own family.

“I am walking tall,” he assured, adding that the knowledge, skills and insight he gained in the transport sector during his ten years at PRASA would be used to the benefit of South Africa.

Montana’s address followed the announcement by PRASA on Thursday that COO Nathi Khena would assume the role of acting CEO and that he would not be required to work the remaining five months of his contract.

PRASA earlier called a press briefing to explain the move, however group strategy officer Sipho Sithole told media at its headquarters, in Pretoria, that, following a meeting with the Department of Transport, the State-owned firm believed that a prior statement on the matter was sufficient and it would not entertain further questions.

The Democratic Alliance this week reinforced its call for Transport Minister Dipuo Peters and PRASA to account for the “increasing number of worrying allegations” against the company.

PRASA was currently facing a myriad of allegations, significant public speculation and media reports that it had bungled a R3.5-billion contract for a new fleet of trains for its long-distance passenger services, failed to hedge the deal and employed an unregistered lead engineer – reports that Montana had vigorously denied while CEO.

It had been claimed that the first batch of 13 new diesel trains, accounting for R600-million of the 70-locomotive multibillion-rand contract with Spanish train manufacturer Vossloh España, were unsuitable for South Africa’s railway network and were likely to cause damage to the overhead electrical cables.

It was while Montana had attempted to reassure South Africa and put to bed any doubt over the safety or standards of the Afro 4000 diesel locomotive range, that further damaging allegations surfaced – this time against PRASA’s head engineer Dr Daniel Mtimkulu, who played a significant role in the design and purchase of the new trains.

PRASA had initiated an inquiry into the claims that Mtimkulu was not registered with the Engineering Council of South Africa and that there was no record of him having studied at the University of the Witwatersrand, where he said he obtained an engineering degree before studying in Germany to get his doctorate.

However, PRASA said Mtimkulu was not a chief engineer but an executive manager for engineering services in the PRASA Rail Operations Division.

The final alleged indiscretion by PRASA was that it had failed to hedge the exchange rate on the contract for the new trains, which meant the initial R3.5-billion price-tag for the new fleet could rise to over R5-billion as the rand depreciated against the euro.

The National Union of Metalworkers of South Africa (Numsa) said it hoped the issues and allegations would not be swept under the rug now that Montana had left the company.

“Montana’s exit [is] symptomatic of how South Africa’s State-owned entities have become mired in maladministration, lack of accountability and looting that is pervasive in our country,” Numsa said, adding that it was “determined to get to the bottom” of the PRASA board’s decision to let Montana go.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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