Prasa appoints new acting CEO

Johannesburg – The Passenger Rail Agency of South Africa (Prasa) has confirmed that corporate secretary Lindikaya Zide has been appointed interim CEO, while the state-owned enterprise looks to appoint a permanent group CEO.

This is according to board spokesperson Nana Zenani, who told Fin24 by phone that the process of appointing a new CEO had started as adverts had been issued in Sunday papers.

“Prasa has already issued an advertisement for a permanent group CEO. In the interim we have appointed an acting CEO. The gentleman is Lindikaya Zide," she said. 

This follows the dismissal of Collins Letsoalo by the board. According to a report in the Sunday Times, Letsoalo allegedly awarded himself a 350% salary increase of R5.9m. He was appointed in July 2016.

READ: Prasa board dismisses acting CEO after salary scandal

Letsoalo had held a press briefing to dispute the Sunday Times report. He claimed the report was part of a "media assault" and the first of three articles from an "unholy alliance" aimed at destabilising Prasa and his administration. 

At the briefing, Letsoalo read out his letter of appointment from Prasa general manager Bongani Nkomo, which stated that the company's package for group acting CEOs amounted to R5.9m a year.

ALSO READ: Prasa CEO’s salary package not approved by the board, it says

However, Zenani told News24 that there was a misunderstanding regarding a confirmation letter sent to Lestoalo on the remuneration package for a group CEO.

Zenani said this amount was meant to serve as an indication to Letsoalo of what the company offered a person in that position, based on the amount of work and expenses he or she would incur.

This would be followed by a discussion by the board and a final decision to approve the said salary by the board’s remuneration committee, said Zenani.

“The letter was not an authentic approval. It was written by the board, but not for the reason [of an] automatic increase. It still needed to go through the proper channels,” she said.