Photo by: Duane Daws
Managers at the Passenger Rail Agency of South Africa (PRASA) have not been holding each other accountable, according to acting CEO Nathi Khena.
Khena told Parliament on Thursday that the R550-million in irregular expenditure incurred by PRASA during the 2014/15 financial year is indeed alarming.
“We have not been holding each other accountable,” he said. “There has been no consequence management when they have done wrong.”
Khena promised the Transport Portfolio Committee that this would change. “We have said to each other that any irregular expenditure will result in consequences.
“Management must take blame for a number of things,” said Khena. “The instruction from our shareholder and the board is that management must shape up or ship out.”
Khena has had a rough ride since Lucky Montana was removed as CEO in July, having to deal with allegations that PRASA’s new locomotives flouted rail specifications and revelations that his head engineer lied about his qualifications.
In August, Public Protector Thuli Madonsela released Derailed, a report that found widespread evidence of maladministration, improper conduct and nepotism at PRASA.
PRASA chairperson Popo Molefe said that before the report was published the board commissioned an independent investigation by Werksmans Attorneys, and that the auditor general was probing all payments over R10-million in the last financial year.
PRASA reported a R1-billion loss for the 2014/15 financial year, which was blamed on the country's ageing rail system and old locomotives.
The rail agency will spend R172-billion over the next 10 years on rolling stock fleet renewal and signalling programmes.
Opposition MPs vent their PRASA frustration
Cope MP Leonard Ramatlakane said the committee is concerned about the management of this modernisation programme budget and wants more transparency from PRASA.
“We (as the Transport Portfolio Committee) have to rely on stories in the media… as the board is secretive,” he said, calling for proper engagement with PRASA.
Emotions became heated during the session, with ANC MP Patrick Sibande bemoaning the R34-billion Moloto Rail Project, saying he “feels like crying” over the countless deaths that have occurred on the Mpumalanga roads as result of the delayed project.
Transport Minister Dipuo Peters announced last year that the government would give PRASA R20-billion towards a rapid rail service, R10-billion for rail stock and R1.8-billion to improve the condition of a road that has claimed countless lives.
Cope MP Deidre Carter was more to the point: “Naughty children (like PRASA) need to get a hiding.”