Court says Prasa’s axed CEO entitled to earn the same as any group CEO
A judge has not only reinstated the Prasa board dissolved by the former transport minister, but also says Collins Letsoalo’s 350% salary increase is justified
Former Passenger Rail Agency of SA (Prasa) acting group CEO Collins Letsoalo’s 350% salary increase was justified‚ the High Court of Pretoria ruled this week. This emerged as Judge Peter Mabuse set aside the decision by former transport minister Dipuo Peters to dissolve the Prasa board. He ordered that the board be reinstated and the interim board be dissolved with immediate effect. Prasa chairman Popo Molefe had approached the court to have himself and the rest of the board reinstated, the minister’s decision to remove them declared unlawful‚ and for any appointment of an interim or new board to be declared unlawful. The board was dissolved following the removal of Letsoalo, who was axed in February after reports revealed he had given himself a 350% salary increase. In his judgment, Mabuse noted that the salary package for a group CEO stood at R5‚986‚140‚ the same package the previous Prasa CEO‚ Lucky Montana‚ had received. He also noted that in Letsoalo’s letter of employment‚ he ...
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