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Cabinet approves Mbalula placing Prasa under administration

Dec 17 2019 17:43
Khulekani Magubane, Fin24

Cabinet has approved Minister of Transport Fikile Mbalula's decision to dissolve the Passenger Rail Agency of South Africa's interim board and place it under administration, according to Minister in the Presidency Jackson Mthembu.

Mthembu was briefing the media on Tuesday about the outcomes of last week's Cabinet meeting. 

The dissolution of the passenger rail agency's board was announced by Mbalula last week, following continued governance and financial challenges, including a disclaimer of opinion from the Auditor General. 

Mbalula said last week Monday that the appointment of the administrator, which was supported by Cabinet, would provide a "quick turn-around times in decision-making with a view".

Mthembu told reporters on Tuesday morning that the response by Mbalula was critical, as South Africa relied heavily on the passenger rail network to transport people.

"Cabinet believes that SA needs a reliable, economical and smooth flowing rail corridor, that acts as the back door of public transport linking all transport modes," said Mthembu.

Mthembu said the decision to approve Bongisizwe Mpondo as the administrator would go a long way in addressing the lack of financial management and a disclaimer of opinion.

"Mr Mpondo will administer the affairs of Prasa for 12 months. The minister has spoken on these matters and will continue to monitor then, having been mandated by Cabinet to do so," Mthembu said.

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