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Johannesburg - Acting Prasa CEO Collins Letsoalo’s R5.9m salary was not approved by the board, it said on Monday.
Board spokesperson Nana Zenani told News24 that there had been a “huge” misunderstanding regarding a confirmation letter sent to Letsoalo dated October 26 2016, in which the board outlined the annual remuneration package for a group CEO at the time.
The amount was R5 986 140.07, it said at the time.
However, 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.
‘Letter needed to go through proper channels’
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, Zenani said.
“What needed to happen was a discussion on what the remuneration would be, and for the committee to ratify the recommendation on whatever they agree on.
“When that doesn’t happen, it means there is a flouting of policies and protocol, deeming it illegal.
“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.
Letsoalo held a media briefing earlier on Monday to respond to a Sunday Times report which alleged that he had increased his salary from R1.7m to R5.9m per annum in October, a 350% rise. He was appointed in July 2016.
‘I will show you the good work I have done’
Letsoalo claimed "unholy alliances" were spearheading the campaign against him, adding that the “attack” on him and Prasa was a result of resistance against his turnaround plan.
"I know these people. I know who they are. One of these good days I'll bring you the evidence and show you what they are doing to undermine me and the good work I have done at Prasa.
"I remain a proud incorruptible public servant. No amount of front page attacks is going to worry me... Prasa today is better than yesterday," he said.
Zenani said the board was not aware of Letsoalo’s salary boost because he had not followed the right channels, which subsequently left the board “out of the loop”.
However, since the publishing of the article an internal investigation had been instituted, she said.
“The board was not aware of this.
“When it came to light, the immediate response by the board was to ask for Mr L to be recalled and for investigations to begin.”
Zenani would not comment on whether Letsoalo would be made to pay back any of the money he had earned unlawfully, saying the board was still awaiting the outcomes of the investigations.
“(It is) Difficult to pronounce the next step until investigations are completed."
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