PRASA Board Reviews Labor Court Judgment On Former CEO's Contract Termination

The board of Passenger Rail Agency of South Africa (PRASA) said it is currently reviewing the Labor Court's decision regarding the termination of the contract of its former Group Chief Executive Officer (GCEO) Zolani Kgosietsile Matthews.

PRASA said on Tuesday that the board is "currently reviewing the judgment in detail, in consultation with the legal department, and we will communicate any further actions in due course," SA News reported.

It added, "In promoting good governance, the PRASA Board is committed to ensuring that our actions align with legal obligations and the company's best interests. The Board Of Control (BOC) remains dedicated to ensuring that PRASA builds on its successful rail rebuilding turnaround."

Furthermore, the agency said that it is focused on fulfilling its primary mandate of providing rail commuter services and long-haul passenger rail and bus services in the public interest, adding that the "BOC continues to discharge its fiduciary duties whilst upholding a high standard of fairness and integrity."

The PRASA board in December 2021 ended Matthews's contract following an investigation by experienced senior counsel. The investigation aimed to determine if Matthews had intentionally withheld important information from PRASA about holding dual citizenship.

Several months later, retired judge Robert Nugent reportedly ordered PRASA to reinstate Matthews with back pay during arbitration. PRASA requested the Labor Court to reconsider Nugent's decision.

According to reports on Monday, the Labor Court ruled that Matthews' contract with PRASA remains valid.

PRASA announced last week that 31 out of 40 rail routes are now operational after extensive theft and vandalism severely damaged the country's rail network during the COVID-19 lockdown, according to Group Chief Executive Officer (GCEO) Hishaam Emeran.

Speaking at the Africa Rail 2024 Conference in Sandton, Emeran highlighted that PRASA has restored nearly 80% of passenger rail routes. The agency has so far invested more than R12 billion in capital projects and created around 4,500 jobs for South Africans.

President Cyril Ramaphosa in April said the government is working towards providing accessible transportation to all categories of people, including persons with disabilities.

He noted that PRASA "developed a universal access policy with norms and standards. It has committed to speed up its work to ensure that trains are accessible and station platforms are level."