Passenger Rail Agency of South Africa (Prasa) board chairperson, Popo Molefe, says company policy provides up to a 12% salary increase for the acting Chief Executive Officer (CEO).
Speaking to Xolani Gwala on the Breakfast show, Molefe explained that the dismissed acting CEO Collins Letsoalo should have known that he cannot get the same package as the former boss Lucky Montana who got R5.9 million.
He says the Minister of Transport also explained in a letter that Letsoalo will remain on the salary he was getting from the Department plus all other benefits.
Molefe also revealed that Montana's salary package was 'not a genuine offer' by the board at the time.
Prasa has the prerogative taking into account the amount of work we give to him, to increase the salary by up to 12%.— Popo Molefe, Prasa board chairperson
The board of that time took the decision believing it was a genuine offer [to Montana]. But we have established that was not a genuine offer. It was a way of getting a new contract and better salary. But leave that. Let's deal with this one of Mr Letsoalo.— Popo Molefe, Prasa board chairperson
Our position is a very simple one. The board needed to approve. It did not approve. The person who advised Mr Letsoalo that the approach he was taking was irregular was suspended by him, and he brought in another person.— Popo Molefe, Prasa board chairperson
Letsoalo was removed from his position on Monday after his own press briefing where he denied the 350% salary hike allegations saying there is a plot to discredit him.
Molefe says the Department will follow internal disciplinary procedures for the other implicated employees.
Listen to the full interview with Popo Molefe for more details...