Prasa will probe chair Leonard Ramatlakane’s move into swanky company home
It is understood the board was not aware Ramatlakane was staying in the Prasa-owned house and that it was never informed as it should have been, even as a courtesy
Ailing state passenger rail company Prasa has instituted an internal inquiry into its chair, Leonard Ramatlakane, for occupying one of its properties in Newlands, Cape Town, while his own house is being renovated.
This follows an exclusive story in the Sunday Times in which the newspaper reported Ramatlakane and his family had moved into the Prasa property in the expensive Cape Town suburb.
Now, the agency has tasked accounting firm SNG Grant Thornton to conduct the inquiry and has given the company a deadline of 14 days to complete it.
It is understood the board was not aware Ramatlakane was staying in the Prasa-owned house and that it was never informed as it should have been, even as a courtesy.
The board was expecting a report on Prasa’s property portfolio, which includes the Newlands house, because they wanted to discuss what was to be done with them.
The house, which cost taxpayers R2.5m to renovate over the past two years, was supposed to have been used by Prasa executives when they visited Cape Town on business.
Prasa insisted Ramatlakane was paying a “market-related” rental for the property in which he held his 70th birthday celebration in February, but did not say how much that was. The agency said he had entered into a short-term lease agreement with the state-owned entity.
“Following news reports of the Prasa chair’s rental of Prasa-owned property, the Prasa board of control convened an urgent board meeting on March 6 to discuss allegations levelled against the chairp of the board, Mr Leonard Ramatlakane, in a Sunday Times article published on March 5. The article makes several allegations regarding Mr Ramatlakane’s rental of a Prasa-owned property in Newlands, Cape Town,” the agency said in a statement.
“After much deliberation, the board resolved to refer the allegations for an internal inquiry, in line with applicable Prasa policies and the law. The board further resolved that in circumstances where the allegations or findings may affect the chair, the report and findings will be referred to the shareholder [minister of transport], who is an appropriate authority in law to consider and decide in that regard.”
The state-owned entity said it was expecting to receive a report within 14 days.
“Prasa is focused on successfully executing its mandate. In discharging our fiduciary duties and in line with the board charter, we must ensure that our members comply accordingly and uphold a high standard of integrity and vigilance,” the board said.
Insiders at Prasa have said Ramatlakane’s rental of the property had caused “suspicions of favouritism” and that the deal was not above board.
When the Sunday Times visited Ramatlakane’s own house in Cape Town’s northern suburbs last week, it was still being renovated and extended. The roof had been removed and a number of decorative pillars had been installed. A builder on the construction site said they had begun work on the home in December.
In contrast, the double-storey Prasa house was in pristine condition with a large, modern balcony and immaculate paving. The house, close to Newlands cricket stadium, is in one of Cape Town’s most sought-after suburbs where houses are on the market for more than R15m.
Prasa has suffered serious financial losses in the past four financial years and received a disclaimed audit opinion from auditor-general Tsakani Maluleke, the worst possible finding that indicates that the organisation cannot account for how its money was spent.
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