Leadership crisis puts spoke in Prasa’s wheel
Technically the ‘rail agency currently has two CEOS’
Prasa’s appointment of Hishaam Emeran as the state entity’s acting Group CEO last August raises legitimate suspicion of wanton abuse of power by its top brass.
Recently obtained court records show that the state-owned rail agency fired Emeran from his position as CEO of Prasa Technical two years ago for non-performance.
According to the documents, Emeran challenged the dismissal in court and Prasa swiftly backtracked without even putting
up a fight.
Emeran’s employment as CEO of Prasa Technical was terminated on February 18 2021 after just over six months of service.
In a termination letter, Prasa’s then acting group chief executive Thandeka Mabija said Emeran’s probation review session was held on February 3 2021 and “the organisation has reviewed your conduct, your suitability and your performance in the position of chief executive officer Prasa Technical from 1 June 2020 to date”.
“In assessing the outcomes of your performance, following deliberation the organisation has concluded that you have not met the performance standards as expected in line with the position of chief executive officer Prasa Technical, during this period you have failed to fulfil the expected performance targets”. Mabija said Emeran’s fixed contract was as a result terminated and was “required to return all company assets in your possession”.
Emeran approached the Labour Court in Johannesburg two weeks later seeking urgent relief against Prasa including reinstatement. On March 9 2021 he got a court order for reinstatement with full benefits.
The court ordered that Prasa “pay the applicant’s wasted costs for the urgent application,” including counsel costs.
Prior to Emeran, former Group CEO Kgosie Matthews was also fighting allegations of non-performance. Matthews’ matter was still pending in court after Prasa threatened to review and set aside his labour court victory.
The case may be heard in 2024, Prasa insiders said, adding that “technically”, the rail agency currently has two CEOS.
In a statement that Prasa issued following Emeran’s appointment, the company only said he had “a wealth of experience in the transportation industry and has been with Prasa for more than 18 years and spent 10 years in the private sector prior to joining Prasa”.
The Prasa board of control said “his appointment allows for a seamless continuation of Prasa’s recovery programme and leadership as he has been very much involved in the recovery programmes at the agency”.
But two years earlier the same board and the then acting Group CEO, said the officials, were singing a different tune.
The officials said Prasa was prone to entering expensive and prolonged court battles with fired executives hoping that they will eventually run out of resources to litigate.
But even with Matthews on the sidelines, said the officials, it was unclear how Prasa navigated the adverse outcomes recorded in Emeran’s performance assessment in February 2021.
And how the agency had a change of heart last August and ultimately agreed that he was best suited to steer the dysfunctional ship forward until a permanent appointment was concluded, boggled the mind, the officials said.
The incident cast a spotlight on the wanton dismissal or suspension of executives in government and state-owned entities through abuse of power by the top brass, said a former executive.