Prasa board dismisses acting CEO after salary scandal

Cape Town – The board of the Passenger Rail Agency of SA (Prasa) has voted unanimously to dismiss acting CEO Collins Letsoalo, SABC Online reported on Monday evening.

This comes just hours after a media briefing held by Letsoalo saying that a war was brewing between him and those he claimed were trying to destabilise the company.

"I will fight this corruption in Prasa. I will fight this nepotism in Prasa... I want to say to my colleagues, war is coming, but we must never deviate from the cause. Dogs never bark at stationary cars."

Letsoalo held a press briefing to respond to a damaging Sunday Times report which alleged that he had increased his salary from R1.7m to R5.9m per annum in October. He was appointed in July 2016.

Prasa head of marketing and communications, Nana Zenani, confirmed the board's decision to dismiss Letsoalo.

"Yes it's true. The decision was taken this afternoon by the board following the presser this morning relating to the article in the Sunday Times," Zenani told News24.

Letsoalo on Monday rejected a Sunday Times report that he increased his salary by 350% as "unfair" and "seeking to undermine the work I have done".

READ: I am entitled to R5.9m - acting Prasa CEO

Letsoalo said he would not have accepted his appointment had he been offered R1.7m, which he earned as Road Traffic Management Corporation CEO.

"I have 70 000 employees and five CEOs. You want to say I must still get paid that money? If they sent me that letter in the agreement I would have said 'no'. There is no way I was going to do so much work for nothing. What I am entitled to I will get."

'Media assault'

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. Processes had to be followed to increase one's salary, he said.

Letsoalo read out his letter of appointment letter from Passenger Rail Agency of SA general manager Bongani Nkomo. It stated that the company's package for group acting CEOs amounted to R5.9m a year.

He told journalists he was given a salary with benefits, which included a car allowance. He denied that had demanded an unlimited cellphone package, since he already had one and was paying for it himself.

According to his appointment agreement he would receive a benefit of a company car, which his predecessors, including former CEO Lucky Montana, had used.

The Sunday Times reported that Letsoalo pressured acting group executive for human capital Bhekani Khumalo for the 350% increase. After Khumalo declined to meet his demands, Letsoalo replaced him with another employee.

"This story that Khumalo is dismissed: I don't know where it is coming from. The man is not dismissed at all."