CASAC welcomes the decision by PRASA (Passenger Rail Authority of South Africa) to terminate the contract of its Acting CEO, Collins Letsoalo. Following reports in the media, the Board had been requested by the Minister of Transport to investigate the circumstances under which the salary of Mr Letsoalo allegedly increased by over 350%.

Mr Letsoalo had been seconded from the Department of Transport to PRASA in July last year. The Board found he had irregularly and without authorisation of the Board of the state owned company adjusted his salary. It is hoped that the speedy action by the Board of PRASA represents a new approach by state owned companies to deal decisively with governance failures. We also call on Mr Letsoalo’s employer, the Department of Transport, to take the necessary disciplinary action against him for his misconduct.