South Africa government approves placing Prasa under administration

 

SA Transport Minister

Jackson Mthembu, a minister in the Presidency, during a media briefing on Tuesday about the outcomes of last week’s cabinet meeting, said the South Africa government has approved the decision of the Minister of Transport Fikile Mbalula to dissolve the Passenger Rail Agency of South Africa’s (Prasa) interim board and place it under administration.

 

The transport minister had last week announced the dissolution of the passenger rail agency’s board, following continued governance and financial challenges, including a disclaimer of opinion from the Auditor General.

Mthembu told reporters that “Cabinet believes that SA needs a reliable, economical and smooth flowing rail corridor that acts as the back door of public transport linking all transport modes.”

 

He said the decision to approve Bongisizwe Mpondo as the administrator for 12 months would go a long way in addressing the lack of financial management and a disclaimer of opinion.