The Pretoria High Court has ruled that the two contracts entered into by Prasa with its former CFO Fenton Gastin were invalid.

The two contracts were, first hiring him as a chief financial officer, and second giving him a day-to-day contract after he had been fired.

Minister of Transport Joe Maswanganyi welcomed the ruling, stating, “As government, we are a constitutional state, governed by laws, regulations and policies. We have committed ourselves to deal decisively with fraud and corruption, and will do everything in our power to root out these acts of dishonesty and criminality wherever they emerge.”

“As the Prasa shareholder, I will continuously monitor progress and ensure that necessary controls and systems are put in place to promote good governance, because commuters in our country who heavily rely on public transport deserve nothing but the best,” Maswanganyi added.

Controversy around new Prasa board

Maswanganyi said that he will direct the soon-to-be-appointed Board of Prasa to delve deeper into the perceived corruption and leave no stone unturned when dealing with matters of corruption within the organisation, especially in relation to the Auditor General and Public Protector’s reports.

However outgoing Prasa chairperson Popo Molefe has lashed out at Maswanganyi, accusing him of prejudicing the board’s investigation following former Public Protector Thuli Madonsela’s ‘Derailed’ report.

The previous board’s three-year tenure ended on 31 July and was not renewed.

In a statement issued at the end of the board’s tenure, Molefe said, “The departing board does not believe that the minister has Prasa’s best interests, and the interests of the public, at heart.” He went on to described how both the current and previous minister undermined the board’s activities.

“The board has thus sent detailed written submissions to the president, the speaker of the national assembly and the public protector in order to highlight its concerns and express its lack of confidence in the independence and ability of the minister to fulfil his statutory mandate,” Molefe said.

The Organisation Undoing tax Abuse (OUTA) has also added its voice to the mix, expressing concerned that Maswanganyi is using the board’s departure to obstruct or terminate the corruption investigations into the prior Prasa management’s activities, which have cost the public billions of rand in illegally awarded contracts.

“We raise our concerns over the conduct of Minister of Transport Joe Maswanganyi, who tried to remove Molefe before his tenure ended, and believe it would make sense for the Minister to extend Molefe’s appointment as the chairperson, so that he can ensure the continuity of his good work,” said Ben Theron, OUTA Chief Operating Officer.