Acting CEO of Prasa booted out

Passenger Rail Agency of South Africa (Prasa) acting CEO Collins Letsoalo’s secondment to the state-owned enterprise was last night terminated with immediate effect.

Letsoalo was seconded to Prasa by Transport Minister Dipuo Peters in July to find solutions to the parastatal’s continuous irregular expenditure, amounting to R13.9 billion. He then occupied his position in the same month, after former CEO Lucky Montana’s departure.

The Sunday Times this week reported Letsoalo had not honoured the terms of his appointment.

According to the newspaper, he instead demanded a salary increase of 350%, equalling that of his predecessor Montana, and a chauffeured vehicle.

But at a media briefing in Pretoria yesterday, Letsoalo refuted the report. He said Prasa had failed to pay him for five months, from July to November.

According to the acting CEO, he only received his salary after November.

Letsoalo said the salary of R1.3 million he was earning at the department of transport had never changed, even after his transfer to Prasa.

Instead, he only received a 12% secondment allowance. This was despite the board agreeing to pay him an annualised salary rate applicable to the position, as per the remuneration policy.

And despite being entitled to all the benefits for the position, Letsoalo said he did not take any of them, apart from the car allowance.

“When I was seconded, I was supposed to get an annualised salary at the level of a CEO, around R5.9 million per annum,” Letsoalo said. “But my R1.3 million salary remains.”

Prasa spokesperson Nana Zenani last night told eNCA that the Prasa board had terminated Letsoalo’s secondment with immediate effect.

She said Prasa would first have to investigate the matter fully before deciding on a path forward. She would not comment on whether Letsoalo would have to pay back money to Prasa if he had indeed been paid an inflated salary.