PRASA Board Reviewing Labour Court Ruling on Former CEO

The Passenger Rail Agency of South Africa (Prasa) board is currently examining the Labour Court’s recent decision regarding the termination of former group chief executive officer Zolani Kgosietsile Matthews’ contract.

Prasa stated on Tuesday, “We are thoroughly reviewing the judgment in detail, in consultation with our legal department, and will communicate any further actions in due course.”

Matthews’ contract was terminated in December 2021 following an investigation by senior counsel, which revealed that Matthews had intentionally failed to disclose crucial information about his dual citizenship to Prasa.

Several months later, during arbitration proceedings, retired judge Robert Nugent ruled that Prasa should reinstate Matthews with back pay, as reported by various media outlets.

In response, Prasa sought to have Nugent’s ruling reviewed by the Labour Court. On Monday, the court ruled that Matthews’ contract remained valid.

The agency emphasized its commitment to good governance, stating, “The Prasa Board is committed to ensuring that our actions align with legal obligations and the company’s best interests. The Board Of Control (BOC) remains dedicated to ensuring that Prasa builds on its successful rail rebuilding turnaround.”

Prasa reiterated its focus on its primary mandate of providing rail commuter services and long-haul passenger rail and bus services in the public interest, and assured that the BOC continues to uphold high standards of fairness and integrity in its fiduciary duties.

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