Satawu welcomes Prasa board dissolution

Dipuo Peters’ decision to dissolve the board over corporate governance faces legal action from former board chair Popo Molefe.

Passenger Rail Agency of South Africa (Prasa) took journalists aboard the new trains it purchased from a Spanish manufacturer to prove that they comply with standards on 13 July, 2015. Picture: Kgotatso Mogale/EWN.

CAPE TOWN - South African Transport and Allied Workers’ Union (Satawu) has welcomed the dissolution of the Passenger Rail Agency of South Africa (Prasa) board.

Transport Minister Dipuo Peters’ decision to dissolve the board over corporate governance issues faces a legal challenge from former board chairperson Popo Molefe.

Satawu's Zanele Sabela says: “Under the dissolved board trains were never on time or rarely arrived. This resulted in workers arriving late for work. Projects for modernisation fell by the wayside and the safety of commuters appears to be deprioritised.”

In a letter, Peters said would implement interim measures which would soon be announced.

“The minister, in her final determination of this, has made careful consideration of numerous correspondence with the board. We therefore announce as follows: the immediate dissolution of the board in its current state.”

The minister said public spats between board members and former acting CEO Collins Letsoalo could have been avoided.

She added the decision to disband the board was also taken in an effort to restore good corporate governance and stability at the institution.

(Edited by Shimoney Regter)