DA requests Public Service Commission investigation into personal enrichment by Prasa Acting CEO

27 February 2017

The DA will write to the Chairperson of the Public Service Commission, Advocate Richard Sizani, requesting that he investigate Acting CEO of Prasa, Mr Collins Letsoalo’s alleged demands to be paid a salary of R5,9 million, which is more than triple the R1,3 million he signed on for when he was seconded from the Department of Transport.

Section 196(4)(c) of the Constitution read with Section 8, 9 and 10 of the Public Service Commission, empowers the PSC to investigate the personnel practices of the public service, inspect departments and other organisational components in the public service and conduct an inquiry into any matter in respect of which it is authorised by the Constitution or Public Service Act to perform any function.

Today, the DA’s Spokesperson for the Standing Committee on Public Accounts (SCOPA), David Ross MP, also wrote to SCOPA, requesting that Mr Letsoalo be summoned before the committee to clarify his controversial salary package.

If proven to be true, it will again be obvious that Prasa's leadership is neither committed to turning the entity around, nor to implementing the remedial action of the Public Protector as contained in the “Derailed” report.

The report detailed vast corruption within Prasa with the Hawks and National Treasury consequently investigating 39 reported cases of corruption as well as 100 contracts in accordance with remedial action from the report.

Transport Minister, Dipuo Peters, has seemingly taken very little action based on the Public Protector’s report. The DA will therefore also write to the Minister to request a full update on the implementation of the Public Protector’s recommendations.

In a reply to a DA parliamentary question, the Minister made a commitment to ensure that the Prasa board appoints a new CEO in the first half of 2016. The failure to do so is despite clear evidence that Mr Letsoalo has failed to turn around Prasa and balance its precarious financial position.

Mr Letsoalo’s outrageous demands are a consequence of a flawed remuneration approach for CEOs of SOEs. A parliamentary response to a DA question in 2016 revealed that the remuneration of CEOs of SOEs was not standardised. The obligation was left to boards of the respective entities to determine the package.

The astronomical salaries being earned by CEOs of SOEs, despite poor performance, shows that this approach has failed and is due for review.

The DA will not stand by while the country is bled dry by outrageous salary demands by CEOs of SOEs. Not while there are millions of young South Africans who have no hope of ever finding employment because the ANC-led government has prioritised paying massive salaries over providing quality basic education and skills for our young people need to succeed.

Issued by Manny de Freitas, DA Shadow Minister of Transport, 27 February 2017