Madonsela releases scathing findings against Prasa's axed CEO
Lucky Montana was found to have irregularly awarded tenders, appointed companies & suspended employees.
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.
#Prasa Thuli Madonsela's report is called "Derailed" - several incidents of maladministration and improper conduct found against rail agency— EWN Reporter (@ewnreporter) August 24, 2015
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.
#Prasa Madonsela says she decided to continue with report with documents she had and defer others to a second report. GN— EWN Reporter (@ewnreporter) August 24, 2015
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.