Prasa removes Letsoalo as acting chief executive

Last night the Passenger Rail Agency of South Africa's board has reportedly voted to remove acting group chief executive Collins Letsoalo, hours after he made a statement denying claims that he gave himself a 350% salary increase.

The axing was reported on by various media houses, including Eyewitness News, the Citizen newspaper and broadcaster eNCA.

Yesterday, Letsoalo had come out guns blazing, and had denied the allegations as reported by the Sunday Times this weekend.

The newspaper also reported that Letsoalo demanded a car with a chauffeur and a company cellphone with unlimited calls.

At a press conference yesterday, Letsoalo said the Prasa board approved his remuneration package on the same level as the previous chief executive and provided a letter from the board to confirm this.

But 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 what the annual remuneration package for a group chief executive at the time.

“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."

Meanwhile the United National Transport Union, the majority union in the Passenger Rail Agency of South Africa, had called for Letsoalo’s head.

In a statement yesterday, the department made it clear that Letsoalo was still on its payroll and his benefits remain unchanged but late yesterday the board, which had been given until Friday to report back to the department, voted unanimously to dismiss Letsoalo .

Democratic Alliance member of Parliament Manny de Freitas said that Letsoalo’s “outrageous demands were a consequence of a flawed remuneration approach for chief executives of state-owned entities”.

The remuneration of these chief executives was not standardised. The obligation was left to boards of the respective entities to determine the package.

“The astronomical salaries being earned by these chief executives despite poor performance shows that this approach has failed and is due for review,” said De Freitas.

Letsoala, who insisted on the same salary package as former group chief executive Lucky Montana of about R5.9 million, said at the press conference that he deserved it.

According to reports, it was three times more than the salary of R1.3 million he earned at the transport department. He was seconded from the department to act as chief executive at Prasa.

But De Freitas said: “The DA will not stand by while the country is bled dry by outrageous salary demands by chief executives of state-owned entities.”

This was why requests were made to the chairpersons of Parliament’s portfolio committee on transport as well as the Standing Committee on Public Accounts to summon Letsoalo to clarify his controversial salary package.

De Freitas said that, if proven to be true, it would be obvious that Prasa’s leadership was neither committed to turning the entity around, nor to implementing the remedial action of the Public Protector as contained in the Derailed report, which revealed earlier large-scale corruption.

But during yesterday's press conference, Letsoalo referred to an “unholy alliance” of people who were trying to destabilise Prasa.

According to figures the department provided in answer to a parliamentary question earlier, Montana earned more than most chief executives of state-owned entities (see information block).

Letsoala also hinted that people who wanted to undermine his anti-corruption work at Prasa were behind efforts to discredit him.

“I will not insist on what I do not deserve,” said Letsoalo. “I worked for this [his salary package], at times without compensation.”

He also asked how it could be expected of him to earn as much as he did at the transport department (R1.3 million) with a lot more responsibilities in his new position. He said five chief executives reported to him. Letsoalo also told journalists he would consider complaining to the press ombud or suing the newspaper for defamation.

	Alicestine October Parliamentary journalist Media24 Parliamentary Bureau City Press p: +27 11 713 9001 w: www.citypress.co.za  e: alicestine.october@24.com
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