South Africa’s state-owned Passenger Rail Agency (PRASA), a victim of corruption under former president Jacob Zuma, has been placed under administration with immediate effect, Transport Minister Fikile Mbalula said on Monday.
Mbalula dissolved the interim PRASA board and appointed Bongosizwe Mpondo as administrator of the firm.
“The administrator (Mpondo) will run the affairs of PRASA as a de facto board of control as envisaged in the PRASA founding law,” the minister said.
The intervention would continue for a year. A permanent board will be appointed at the end of this period, Mbalula said, adding that the process of selection a new board will start after six months.
PRASA has been under spotlight lately for its opaque dealings in the past nine years under Zuma’s rule and the burning of its rail coaches has been attributed to disgruntled contractors involved dubious deals which the parastatal has canceled.
Maladministration in procurement and overcharging the entity for services rendered were the order of the day at the state enterprise, according to the minister.
Mbalula said he was determined to stabilise the embattled firm to endure quality rail services.
NM/jn/APA