Prasa have officially been placed under administration on Monday, just a few days after another state-owned entity (South African Airways) were forced into business rescue. The rail agency will now see their interim board dissolved, and Bongisizwe Mpondo will act as the official administrator.
Minister of Transport, Mr. Mbalula has decided to place PRASA under administration and dissolved the interim board with immediate effect.
— PRASA Group (@PRASA_Group) December 9, 2019
Why Prasa have been placed under administration
Fikile Mbalula made the announcement at a press briefing on Monday morning. He said Prasa had deep-rooted problems and merely replacing an interim board with a permanent one would not solve the problem.
“I have decided to dissolve the Interim Board and place Prasa under administration with immediate effect. The Administrator will run the affairs of Prasa as a de facto Board of Control as envisaged in their founding law and as an Accounting Authority in terms of PFMA.”
“I arrived at a conclusion that a more incisive intervention that enables quick turn-around times in decision-making with a view to stabilise operational performance is more urgent that an appointment of a permanent Board. This view was supported and agreed to by Cabinet.”
Who is Bongisizwe Mpondo?
Bongisizwe Mpondo certainly has his work cut out for him. Prasa is seen as yet another mismanaged company that can match the likes of SAA and Eskom in its incompetency. Transport Minister Mbalula has wielded the axe in a bid to force a positive change – here’s what he expects from Mpondo in his new role:
- Address all matters raised in the damning Auditor-General’s report
- Accelerate interventions aimed at improving performance
- Implement a modernisation programme, focusing on fencing and signalling.
- Develop capactiy to manage Prasa’s capital programme.
- Attend to issues requiring cooperation with Transnet.
- Undertake a review of Prasa’s operational design.
I have no doubt that PRASA is well endowed with men and women who are not only committed to do their best to make sure PRASA succeeds, but who also possess the requisite talent to ensure that we transform the travel experience of our people. https://t.co/GFEU6ZvQgt pic.twitter.com/NF0wfh52XR
— Minister of Transport |Mr Fix (@MbalulaFikile) December 9, 2019