The Board of Control (BOC) of the Passenger Rail Agency of South Africa (PRASA) has announced the termination of Zolani Matthews’s employment with immediate effect.
Last month, Matthews was reinstated as the Group Chief Executive Officer (GCEO), in compliance with the judgement by the Labour Court.
PRASA Board Chairperson, Nosizwe Nokwe-Macamo, said the termination of Matthews’s employment was in line with his contract, and in the interest of PRASA and all rail passengers, as the rail agency remains focused on reopening all rail corridors and refurbishing more stations.
“PRASA has made significant progress in getting South Africa’s passenger rail service back on track, with 31 of the 40 rail corridors opened and functioning at limited capacity. The Board cannot afford to be distracted from delivering on PRASA’s core mandate of transporting commuters safely and cost-effectively,” Nokwe-Macamo said on Thursday.
The PRASA board terminated Matthews’s contract in December 2021 after an investigation by seasoned senior counsel that established whether Matthews deliberately and intentionally failed to disclose material information to PRASA in respect of his dual citizenship.
According to media reports, months later, retired judge Robert Nugent ruled that PRASA should reinstate Matthews with back pay during arbitration proceedings.
In response, PRASA applied to the Labour Court to review Nugent's ruling. In July, the Labour Court ruled that Matthews’s contract was still valid.
Nokwe-Macamo said the Board had intended to reach an amicable agreement with Matthews but attempts to do so failed, leaving PRASA with no choice but to terminate Matthews’s contract.
“In compliance with the Labour Court judgment of 1 July 2024, PRASA reinstated Matthews and paid to him the backdated remuneration, as contemplated in the ruling. PRASA had engaged with Matthews and his legal team to discuss the implications of the judgment and to find a settlement.
“However, given that the attempts to reach agreement have failed, a settlement is no longer an option. In this regard, PRASA has taken the decision to terminate Matthews’ fixed term contract under clause 11.2 of his contract. Matthews will be paid out for the remainder of his contract, thereby bringing certainty regarding the leadership of PRASA,” Nokwe-Macamo said.
The Board Chairperson said PRASA was well on its way to recover rail service in South Africa.
“PRASA is steadily improving its performance through the recovery of passenger rail services, improved safety and security, the acceleration of project implementation through the capital programmes and modernization projects, as well as enhancing revenue, containing costs, and dealing with governance.
“We would like to reassure our passengers and stakeholders that PRASA is firmly focused on delivering on the expectations of our shareholder, the government of South Africa, and the public.
“We have a passionate and professional Board which has been steering PRASA through difficult times. We also have a strong management team led by GCEO Hishaam Emeran and, as the Board, we have every confidence in their ability to achieve the strategic objectives of PRASA and manage the current challenges,” Nokwe-Macamo said.
She said PRASA is in good hands as it moves forward with investments in multibillion rand future projects, including the opening of new lines and the introduction of new trains. - SAnews.gov.za
