The Passenger Rail Agency of SA (Prasa) has fired its CEO, Zolani Matthews, for the third time, just a few days after he returned to his job after a labour court ruling in his favour.
On Thursday, the board of control (BOC) at Prasa announced that it had terminated Matthews’ services and paid him out for the remainder of his contract.
Board chair Nosizwe Nokwe-Macamo said Matthews’ termination was in line with his contract and in the interest of Prasa and all rail passengers. The rail agency remained focused on reopening all rail corridors and refurbishing more stations.
“Prasa has made significant progress in getting the 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.
Matthews was fired by Prasa in 2021 for holding dual citizenship, which the entity at the time said was a material breach that he did not disclose because the dual South African/UK citizenship prevented him from obtaining security clearance.
In April 2022, retired judge Robert Nugent ruled that Matthews should be reinstated with back pay. Nugent said the dual citizenship was not a problem and that Prasa should reinstate Matthews. But before Matthews could set foot in his Johannesburg office, Prasa fired him again — this time for “non-performance”, a decision the agency’s board said it had taken on November 29 2021 but had not told him about because it chose to axe him in terms of security clearance reasons.
Now they have fired him again and said they will pay him out the remainder of his contract.
The board said it had intended to reach an amicable agreement with Matthews but attempts to do so failed, leaving them with no choice but to terminate his contract.
“In compliance with the labour court judgment of 1 July 2024, Prasa reinstated Mr Matthews and paid him the backdated remuneration as contemplated in the ruling. Prasa had engaged with Mr Matthews and his legal team to discuss the implications of the judgment and to find a settlement. However, given that the attempts to reach an agreement have failed, a settlement is no longer an option,” Nokwe-Macamo said.
She said Prasa was well on its way to recover the 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 modernisation 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 that has been steering Prasa through difficult times. We also have a strong management team led by GCEO Hishaam Emeran and we have every confidence in their ability to achieve the strategic objectives of Prasa and manage the current challenges. 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,” Nokwe-Macamo said.
Prasa applied for a review of Nugent’s ruling, which the labour court set aside last month, stating that the contract remained in existence and ordered that he be reinstated.
Last month, Matthews demanded more than R14m in remuneration and benefits for the period that he was unlawfully dismissed.
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