Transport Minister Fikile Mbalula and state-owned entity's administrator Bongisizwe Mpondo have admitted that there are problems within the Passenger Rail Agency of South Africa (Prasa).
Eyewitness News reporter Edwin Ntshidi says Mbalula and Mpondo have told the media briefing that Prasa is a broken business.
Speaking to Nickolaus Bauer, Ntshidi says Mbalula said they need to do a total overhaul of the management.
One of the concerning things they have particularly raised was that there have been a number of investigations that have been undertaken in terms of the cost that have been accumulated in the last few years.— Edwin Ntshidi, Reporter - Eyewitness News
They told us to date Prasa has lost R30 billion as a result of mismanagement and irregular expenditure.— Edwin Ntshidi, Reporter - Eyewitness News
The main concern that was raised is that key information is only kept at computers of mere administrators so it's very easy for that information to go missing as a result of maladministration.— Edwin Ntshidi, Reporter - Eyewitness News
PRASA has suffered blows from many years of mismanagement and deteriorating corporate governance. Today it is a broken organization, struggling to provide an efficient commuter and passenger rail service. #fixingTransport pic.twitter.com/wOvYCmowFy— Minister of Transport |Mr Fix (@MbalulaFikile) January 15, 2020
Extending the mandate of the War Room beyond its original target of 31 December 2019 would have been counter-productive. PRASA is broken and the work done by the War Room helped us understand the extent of the challenges. pic.twitter.com/XnHcNqSObC— Minister of Transport |Mr Fix (@MbalulaFikile) January 15, 2020
Listen to the full interview below...