Fikile Mbalula. Picture: GCIS
Transport Minister Fikile Mbalula has announced that Passenger Rail Agency of South Africa (Prasa) has been placed under administration.
At a press briefing, Mbalula also came to a decision to dissolve the interim Prasa board, a decision based on issues within Prasa.
This was informed by experience as the challenges were deep-rooted, he said, and replacing an interim board with a permanent one would not solve the problem.
Bongisizwe Mpondo has been appointed Prasa administrator with immediate effect while Mbalula is determined to stabilise the state-owned enterprise.
Among the administrator’s key priorities will be addressing all matters raised in the auditor-general’s report to ensure that there are no repeat findings.
Mpondo is an entrepreneur who has experience in corporate governance as well as working with public institutions to improve operational efficiencies. He has served on the boards of many public entities.
The SOE has been in the spotlight since President Cyril Ramaphosa, alongside Mbalula, was trapped during commute in Pretoria for almost four hours.
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