Prasa Dismisses CEO Zolani Matthews for the Third Time, Pays Out Contract Balance.
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Prasa has dismisses their CEO Zolani Mattews and its not his first time being dismissed .

The Passenger Rail Agency of South Africa (Prasa) has once again dismissed its CEO, Zolani Matthews, marking the third time he has been removed from his position. This decision comes just days after Matthews returned to work following a labour court ruling in his favor.

On Thursday, Prasa’s Board of Control (BOC) announced the termination of Matthews’ services and confirmed that he would be paid out for the remaining duration of his contract. Board Chair Nosizwe Nokwe-Macamo stated that the decision was made in accordance with Matthews’ contract and was deemed necessary for the best interests of Prasa and its rail passengers. The agency remains committed to reopening all rail corridors and refurbishing additional stations.

“It has made substantial progress in revitalizing the passenger rail service, with 31 of the 40 rail corridors now operational, albeit at limited capacity. The board cannot afford to be sidetracked from its core mission of providing safe and cost-effective commuter transport,” Nokwe-Macamo explained.

Matthews was initially dismissed by Prasa in 2021 due to his dual citizenship, which the agency considered a significant breach because it had not been disclosed. At the time, Prasa argued that Matthews’ dual South African and UK citizenship prevented him from obtaining necessary security clearance.

In April 2022, retired judge Robert Nugent ruled in Matthews’ favor, ordering his reinstatement with back pay. Nugent asserted that dual citizenship was not a valid reason for dismissal and that they should reinstate Matthews. However, before Matthews could return to his Johannesburg office, the office dismissed him again—this time citing “non-performance,” a decision the board claimed had been made on November 29, 2021, but not communicated due to the security clearance issue.

Now, Matthews has been dismissed once more, with the board announcing that they will compensate him for the remainder of his contract. The board revealed that they had attempted to reach an amicable settlement with Matthews, but these efforts were unsuccessful, leaving them no option but to terminate his contract.

“In compliance with the labour court’s July 1, 2024, judgment, They reinstated Mr. Matthews and provided him with backdated remuneration as specified in the ruling. It engaged in discussions with Mr. Mattews and his legal team to address the implications of the judgment and explore a settlement. However, as these negotiations failed, settlement is no longer a viable option,” Nokwe-Macamo stated.

She added that they is making significant strides in restoring the rail service in South Africa. “Prasa is steadily improving its operations through the recovery of passenger rail services, enhanced safety and security measures, accelerated project implementation under our capital programs and modernization projects, as well as by increasing revenue, controlling costs, and strengthening governance.

“We want to assure our passengers and stakeholders that Prasa is fully committed to meeting the expectations of our shareholders, the South African government, and the public.

“Our board, comprised of dedicated and professional individuals, has guided its through challenging times. We also have a capable management team led by Group CEO Hishaam Emeran, and we have full confidence in their ability to achieve the strategic objectives and manage current challenges. this company is well-positioned as it advances with multibillion-rand investments in future projects, including the opening of new lines and the introduction of new trains,” Nokwe-Macamo concluded.