News

Industries

Companies

Jobs

Events

People

Video

Audio

Galleries

My Biz

Ads & Rates

Submit content

My Account

Automotive News South Africa

Prasa boss does U-turn on stepping down

Passenger Rail Agency of SA (Prasa) CEO Lucky Montana has called the bluff of nonexecutive chairman Popo Molefe and Transport Minister Dipuo Peters with the surprise announcement on Wednesday, 1 July 2015, that he is willing to stay on at the agency, if asked.

Montana has been at loggerheads with certain members of the Prasa board, especially Molefe, for much of this year.

Montana has complained about Molefe meeting Prasa suppliers and executives behind his back, which he says is creating an environment of mistrust.

There has been intense lobbying behind the scenes to keep Montana on, after it was announced in April that he was stepping down, as Prasa is in a crucial stage of implementing its R51bn-rolling stock renewal.

The first new trains are set to arrive in November and work is gathering speed for their manufacture to begin in Gauteng.

In response to questions at a media briefing yesterday, Montana said he had reached the decision to make himself available after extensive consultations.

His statement elicited applause at the Africa Rail conference in Sandton.

Montana said concern about his departure had come from "within the political leadership" of the African National Congress, as well as from across a spectrum of stakeholders, including unions, student associations, parliamentarians and Prasa staff members.

It was "up to the board and the minister" to ask him to stay on.

Critical infrastructure, which has to be in place for the new trains, such as a testing track and service depots, is yet to be completed, putting Prasa under immense pressure to meet its contractual obligations with Alstom-led Gibela Rail. Gibela will manufacture, supply and maintain trains for Prasa for at least the next 18 years.

"I am hoping the issue of the chairman and how he operates can be dealt with," Montana told Business Day on Wednesday.

"I must respect the decisions made by the minister and Cabinet ... speaking from my eight months of experience of working with this board ... the chairman is not acting in the best interests of the board and, if I come back, this particular aspect will need to be solved."

Asked to comment on Montana's allegations of interference and the surprise statement that he is available to stay on, Molefe said he had "no interest in communicating any matters regarding Montana in the media".

"In time, we will get to the story behind the story but we have our internal processes as a board and I will not discuss any of these issues of Montana or the board of Prasa with the media," he said.

In April, in a statement issued on behalf of the board chairman, Peters appeared to accept Montana's decision not to renew his contract, while Molefe said Prasa "could not have wished for a better" person to lead the agency than Montana and the search for a replacement would begin immediately.

Since then, comments from Peters's office indicate Montana's departure was now not as clear-cut and talks were being held over the matter. However, the board's attitude has been that Montana was unwilling to consider extending his contract.

Montana's about-turn will make it impossible for the board to maintain this stance.

"I don't want to fight with the board; Prasa needs more unity, if we are going to be able to deliver our part of the readiness programme," Montana said.

At the time of going to press, Peters's office had not responded to a request for comment.

Gibela CEO Marc Granger said he preferred not to comment on governance matters at Prasa. But if Montana were to stay, "it would be good" as it would allow for continuity at the rail agency, which had so far operated a good procurement and contracting process.

Source: Business Day via I-Net Bridge

Source: I-Net Bridge

For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.

We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.

Go to: http://www.inet.co.za
Let's do Biz