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Madonsela releases scathing findings against Prasa's axed CEO

Lucky Montana was found to have irregularly awarded tenders, appointed companies & suspended employees.

Public Protector Thuli Madonsela at the Prasa press conference on 24 August 2015. Picture: Gia Nicolaides/EWN.

JOHANNESBURG - Public Protector Thuli Madonsela has found Passenger Rail Agency of South Africa (Prasa) guilty of several incidents of maladministration and improper conduct.

Madonsela has been investigating the rail agency and delivered an executive summary of her 550-page report.

Former group CEO Lucky Montana was found to have irregularly awarded tenders, appointed companies and suspended employees.

The public protector has raised serious issues about financial mismanagement within Prasa.

Some of the allegations Involving the awarding of tenders and appointing certain service providers improperly have now been substantiated.

Madonsela says the culture of systematic failure to comply with the company's policy and to manage contracts may have cost Prasa millions in avoidable expenditure.

She's calling on the transport minister and the board to take note of her findings and take remedial action where necessary.

The public protector says her report into financial mismanagement at Prasa is based on the information that was made available to her.

She says maladministration and improper conduct have been highlighted in several of the complaints submitted to her.

"Involving procurement irregularities, conflict of interest, nepotism, human resources management; including victimisation of whistle blowers by Montana."

To read excerpts of Madonsela's report click here.