South African state-owned Passenger Rail Agency South Africa (Prasa) has been put under administration with immediate effect.
Transport Minister Fikile Mbalula announced the decision on Monday saying he had dissolved the interim board.
Bongisizwe Mpondo, managing director and founder of transport company Safiri, has now been appointed as the administrator of Prasa.
Mbalula said on his Twitter feed that “I’ve interacted with employees at PRASA and shared our intervention with the public, I am now with Labour Unions on the same issue.”
Minister of Transport, Mr. Mbalula has decided to place PRASA under administration and dissolved the interim board with immediate effect.
— PRASA Group (@PRASA_Group) December 9, 2019
The minister revealed that among the Administrator’s key priorities are the following:
- Addressing all matters raised in the Auditor-General’s report and ensure that there are no repeat findings.
- Accelerating interventions aimed at improving operational performance.
Mbalula further said that “I have no doubt that PRASA is well endowed with men and women who are not only committed to do their best to make sure PRASA succeeds, but who also possess the requisite talent to ensure that we transform the travel experience of our people.”
We’ve place PRASA under administration, Mr Bongisizwe Mpondo newly-appointed Administrator.
I’ve interacted with employees at PRASA and shared our intervention with the public, I am now with Labour Unions on the same issue. pic.twitter.com/vqNhOWRygw
— Minister of Transport |Mr Fix (@MbalulaFikile) December 9, 2019
PRASA has been accused of irregular expenditure amounting to hundreds of millions of dollars.
The company has faced several problems, including ordering trains that were not suited for South African rail lines.