NATIONAL NEWS – The findings made by Public Protector Thuli Madonsela against the Passenger Rail Agency of SA (PRASA) was a matter of concern, PRASA Board Chairman Popo Molefe said on Thursday.

“The recent Public Protector’s report, Derailed, which is a report on the investigations on maladministration relating to financial mismanagement, tender and appointment irregularities against PRASA are a matter of concern to this Board and management as well as to the Shareholder, to whom we are accountable,” Molefe said in a statement.

“The widely publicised Public Protector’s Report is equally of public interest. Accordingly, the Board of PRASA is impelled to take necessary measures on the reported maladministration and irregularities raised therein.”

He said the Public Protector’s office received a total of 37 complaints and made several “damning findings which the Board has already begun to address appropriately”.

In her findings, Public Protector Thuli Madonsela implicated former PRASA boss Lucky Montana in several instances of alleged financial mismanagement.

Madonsela’s report, titled ‘Derailed’, and released on August 24, made numerous adverse findings against Montana, including alleged maladministration and financial mismanagement involving millions of rands, as well as improper conduct.

Molefe said that as part of the remedial actions on the findings, the Board directed management to strengthen internal controls and to overhaul the supply chain management structures.

PRASA had requested the Chief Procurement Officer at National Treasury to second to it an experienced procurement officer whilst it restructured its procurement management systems, he said.

“Furthermore, PRASA is considering appropriate legal steps in respect of some of the remedial actions recommended by the Public Protector. Internally, management applying the disciplinary code of the company, will deal with the employees implicated in irregularities and wasteful and fruitless expenditure,” said Molefe.