Mbalula dissolves Prasa board

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Minister of Transport Fikile Mbalula has dissolved the Board of the Passenger Rail Agency of South Africa and put the institution under administration.

He has named Bongisizwe Mpondo as the administrator for 12 months.

Prasa has been under an interim board and has allegedly raked billions of rand in irregular and fruitless expenditure.

Addressing the media in Johannesburg, Mbalula says it is more prudent to put the entity under administration rather than to appoint a new board.

“Since the interim board appointment, the affairs of the agency have not improved but have regressed – instead as evidenced by the disclaimer – following two financial years of stagnant audit outcomes of qualified findings. Having considered all these issues and other aspects of the AG (Auditor General) report, I have decided to dissolve the board, and put Prasa under administration with immediate effect.