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If Montana erred‚ he shouldn’t get golden handshake

The Congress of the People (Cope) on Friday said wouldn’t be surprised if Lucky Montana leaves the Passenger Railway Agency of SA (Prasa) with a healthier bank balance.

“Hire‚ fire and buy silence with a golden handshake. That is the common script in government service and the parastatals‚” the party’s Dennis Bloem said in a statement.

“Cope will not be shocked if it comes into use once again at Prasa.”

Montana was on Thursday axed as Prasa’s CEO‚ eight months ahead of the scheduled end of his contract.

The sudden departure caught Cope by surprise as “last week…Lucky Montana‚ appeared very much in charge”.

“He called a press conference with uncharacteristic speed to answer criticisms that the locomotives‚ ordered from Spain‚ were unsuitable for South African use‚” said Bloem.

“He oozed confidence defending the decision to import the locomotives with a video presentation showing the train going through a tunnel without choking for lack of oxygen. He then promptly arranged to take journalists on a ride to prove his point. He kept stressing his commitment to total accountability. COPE was impressed with his candour.

“Was this mere bluster and unjustified egoism on the part of Montana or was it a genuine placing of the facts on the table by him?”

Montana has called yet another press conference with speed. He announced on Friday afternoon that he will later in the day “set out the reasons behind his sacking by the board” of Prasa.

Cope’s Bloem speculated that the axing followed a “criticism of the board by Montana”.

“If so‚ the board will be perceived as being overly thin-skinned and extremely hypersensitive. What role is the minister of transport playing in this shocking turn of events at Prasa?” he asked.

Or‚ should the board be justified in removing Montana‚ Cope felt further action may be necessary.

“If Montana had done anything wrong‚ he should be charged‚ not given a golden handshake. If the board is guilty‚ the minister must investigate and wield the axe against those who breached the common principles of governance‚” said Bloem.

“Cope wonders how big the latest golden handshake will be? It can’t be correct that taxpayers money is abused like this.”

Monytana’s sudden departure was announced in a statement on Thursday‚ which read: “Prasa Group CEO‚ Mr Tshepo Lucky Montana‚ has been released from serving his notice period”.

“On 15 July 2015 the Board of the Passenger Rail Agency of South Africa resolved that Mr Montana will not be required to work the remainder of his notice period‚ which commenced on 1 June 2015. Mr Montana’s last day of employment with the Prasa will accordingly be 15 July 2015‚” the statement read.

Montana had signalled in April that he would not seek to renew his contract when his contract expired on 31 March 2016 as nearly a decade of work at the agency was negatively affecting his health.

Nathi Khena‚ currently Chief Operations Officer of Prasa and Acting CEO of Autopax‚ would serve as Acting Group Chief Executive Officer.

The agency has one of the biggest fleet renewal contracts in the world‚ which has been dogged by controversy.

The 13 diesel locomotives Prasa recently acquired from a Spanish firm at a cost of R600 million are‚ according to news reports‚ the wrong height and will damage existing rail infrastructure.

It’s also been reported that inadequate foreign currency hedging in the contract for locomotives could have forced Prasa to pay almost R5 billion instead of R3.5 billion. Business Day reported the lack of hedging meant that the state agency will only procure 70 instead of the 88 Spanish-made locomotives it originally sought.

Prasa has also been the subject of an investigation by the Public Protector’s office following allegations‚ made in 2013‚ of maladministration relating to financial mismanagement‚ tender irregularities and appointment irregularities.

Advocate Thuli Madonsela’s office said on Thursday she would release her report on the investigation next Thursday‚ July 23.