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'PRASA lawsuit is intimidation'

THE Transport and Allied Workers Union has poured cold water on the Passenger Rail Agency of South Africa's legal action against it, saying the lawsuit was premature.

Prasa has sent a letter of demand to Satawu and its president Ephraim Mphahlele, in which they are suing for R20-million for defamation.

Satawu general secretary Zenzo Mahlangu said yesterday that the trade union viewed the action as an intimidation tactic because internal processes had not been exhausted.

"We called on the board of Prasa to institute an investigation against [group CEO Lucky] Montana on the allegations of corruption and nepotism our workers have laid against him.

"They should have waited until the investigation exonerated Montana of any wrongdoing."

He said Satawu had responded to the lawsuit, but insisted that the solution should be found internally.

On the authenticity of the allegations at Prasa, Mahlangu referred to the matter in which Satawu members had compiled a dossier on allegations of financial mismanagement at South African Airways.

The investigation that followed found former SAA CEO Khaya Ngqula guilty of wasteful expenditure relating to over-payment of retention scheme bonuses to managers that amounted to R27-million and R141-million relating to a golf challenge.

Mahlangu said the allegations at Prasa needed to be probed.

In a dossier against Prasa, Satawu members in the rail sector claimed that Montana was guilty of nepotism for allegedly hiring his uncle without following procedures.

The allegations also included security and rolling stock acquisition contracts worth billions of rand they say were in breach of the parastatal's procurement policies.

The workers upped their fight against the employer by embarking on a strike three weeks ago, but were interdicted after the labour court ruled that the matter could be dealt with internally.

They were demanding that Montana be put on special leave or be suspended when the investigation was under way.

Prasa spokeswoman Nana Zenani said its legal team said Satawu had not responded to the letter of demand. She could not say what Prasa's next move would be.

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