Derailments and worrying turnover raise doubt about Prasa’s stability
The Passenger Rail Agency of SA (Prasa) has had so many acting group CEOs and acting CEOs in the past few years that it is impossible to keep pace. Confusingly, the parastatal’s website lists Cromet Molepo as the new acting group CEO with immediate effect in a media release dated December 7 2017, but omits to mention the appointment of the new "acting CEO of rail" — who reports to him — Mthuthuzeli Swartz in that month. Unions and civil society associations such as UniteBehind have publicly accused both incumbents of unlawful behaviour in previous jobs. But no such charges appear to have stuck. However, turnover of Prasa’s board is like the attrition in President Jacob Zuma’s Cabinet — more specifically, the Treasury — in recent years. This has raised serious questions about the financial and operating stability of state enterprises, including Eskom, Denel and PetroSA, whose opaque governance eventually prompted the private sector to act by suspending lending in some cases. One form...
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