Zolani Matthews has been dismissed again as the group CEO of the Passenger Rail Agency of South Africa (PRASA), this time for “operational reasons.”
The ongoing legal disputes surrounding the hiring and firing of Matthews have already cost PRASA at least R15 million, with the final amount still being calculated. This follows an arbitration award and a Labour Court ruling that forced PRASA to reinstate Matthews last month, along with back pay for the 31 months he was out of work.
Shortly after Matthews returned to his position, PRASA dismissed him again, citing operational needs. The board used a termination clause in his contract, informing him that he would not be assigned any duties because “it is neither practical nor desirable for you to perform your duties when the incumbent is already performing these duties.” The letter, signed by PRASA board chairperson Nosizwe Nokwe Macamo, confirmed that Matthews had been paid R15,345,833 in back pay for the 31 months he was previously out of work.
The board noted that while Matthews’ five-year contract, which started on 8 March 2021, still had 17 months remaining, he would be compensated for the remainder of his term due to his termination for operational reasons.
Legal opinion sourced by PRASA indicates that Matthews initially agreed to a R5.8 million annual package, with additional perks such as a “sign-on incentive fee” of R300,000, a company car, a cellphone allowance, and potential performance bonuses.
Matthews was first dismissed in November 2021 while still on probation. Concerns were raised about his performance, but the board’s initial termination letter did not address these issues. Instead, it focused on Matthews’ failure to disclose his dual South African/British citizenship, which the board deemed irrelevant in the end. An arbitration, led by retired Judge Robert Nugent, later ruled in favor of Matthews, stating that his dual citizenship was not material to his role and ordered his reinstatement.
Despite agreeing to the arbitration, PRASA challenged the decision in the Labour Court and dismissed Matthews a second time, this time citing poor performance during his probation period. However, legal experts stated that it was not legally possible to dismiss someone who had already been dismissed and reinstated by an arbitration award. The Labour Court dismissed PRASA’s review application, affirming that the arbitration award had the status of a court order that must be complied with.
PRASA has since acknowledged this legal advice in its recent termination letter, relying on the “termination clause” in Matthews’ contract due to operational requirements, rendering his duties redundant. However, Zackie Achmat of the rail commuter activist organization #UniteBehind remains skeptical. He argues that Matthews should never have been appointed as PRASA group CEO, given his lack of experience in engineering, corporate management, or the rail industry. Achmat criticized the PRASA board for failing to adhere to basic labor laws and for seemingly ignoring legal advice, which has resulted in further financial losses for the already struggling rail agency.
