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Montana to say why he was axed

Lucky Montana will on Friday afternoon “set out the reasons behind his sacking by the board” of the Passenger Railway Agency of SA (Prasa).

Montana‚ who was Prasa’s CEO‚ has left the parastatal‚ eight months ahead of the scheduled end of his contract.

The announcement of Montana’s intention to address the media on Friday consisted of a simple‚ one-line invitation to the Rosebank’s Park Hyatt hotel.

His sudden departure was announced by Prasa in a statement on Thursday‚ 16 July‚ 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.

Business Day reported that Montana made a name for himself as a man who fought corruption and has lived with bodyguards — paid for by the state — since 2004 after receiving many death threats.

The board is in the process of finding a replacement‚ Prasa said.

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.