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Poor leadership, instability blamed for Prasa's financial woes

The board chair and the CEO addressed the media on Thursday about their plans to turn around the organisation, which they have described as broken and struggling to survive.

Prasa CEO Sibusiso Sithole and board chair Khanyisile Kweyama addressing the media following the organisation’s annual general meeting. Picture: Clement Manyathela/EWN

JOHANNESBURG – The board at the Passenger Rail Agency of South Africa (Prasa) has blamed the financial and governance collapse of the agency on the frequent turnover of CEO’s, boards and even Transport Ministers.

The board chair and the CEO addressed the media on Thursday about their plans to turn around the organisation, which they have described as broken and struggling to survive.

The agency’s 2016/17 annual report has finally been released almost 12 months behind schedule, showing recorded losses of almost a billion rand.

The Auditor-General issued the agency with a qualified audit opinion, raising concerns over the poor financial management.

Prasa’s own management has described the agency as broken, on the brink of collapse and struggling to survive.

Board chairperson, Khanyisile Kweyama, says that this is because there was poor leadership and no stability.

Just in the last three years, the agency has had three Transport Ministers, four boards and over six CEOs.

“With that type of turnover, it’s just almost impossible to keep proper track to implement or start a programme or a strategy and implement it.”

She says they have developed a rescue plan which will bring organisational stability and strict governance and drive effectiveness to improve its services.

(Edited by Leeto M Khoza)

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