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Former acting Prasa boss Letsoalo's 350% increase justified‚ court finds

Former Passenger Rail Agency of South Africa (Prasa) acting Group Chief Executive Collins Letsoalo’s 350 % salary increase was justified‚ the Pretoria High Court ruled this week.

On Monday‚ Judge Peter Mabuse set aside the decision by former Transport Minister Dipuo Peters to dissolve the former board of the Passenger Rail Agency of South Africa (Prasa).

He ordered that the board be reinstated and the interim board be dissolved with immediate effect.

Prasa chairman Popo Molefe had approached the court to have him and the rest of the board reinstated.

They wanted the minister’s decision to remove them declared unlawful‚ to be reinstated and for any appointment of an interim or new board to be declared unlawful.

The board was dissolved following the removal of Letsoalo‚who was axed in February after reports revealed he had given himself a 350% salary increase.

In his judgment Mabuse noted that a salary package of a group chief executive stood at R5‚986‚140‚ the same package the previous chief executive‚ Lucky Montana‚ had received.

He also noted that in Letsoalo’s letter of employment‚ he was told that “Prasa will pay you at the annualised salary rate applicable to this position an in accordance with applicable remuneration policy…”

“It boggles one’s mind that the board seemed to have some difficulty with Letsoalo earning the same salary or the salary of the GCEO‚ the same amount that Mr Montana earned per annum or put otherwise‚ the salary that a GCEO was entitled to."

Mabuse found that if the 350% that the former board members complained about was the percentage that would have brought the level of Letsoalo’s salary to that of a chief executive‚ and if it was agreed on as stated in the appointment letter‚ “…there is no merit therefore in the allegations that it was unilateral”.

“It would appear that it was justified. It is not correct‚ in my view‚ that the increase was unlawful or that it not had not been agreed by the parties in the appointment document.

“In my view the perpetuation of the myth that Letsoalo wanted to increase his salary by 350% per annum is unfounded and unfair to him.

“The truth is that‚ based on the information before the court‚ Letsoalo was entitled to the same package that was agreed upon in his appointment package or the same that was enjoyed by Lucky Montana‚” Mabuse found.

Molefe said Letsoalo’s salary increase was not part of the former board’s application before the court.

He would not be drawn into commenting about Mabuse’s findings on Letsoalo’s salary‚ saying he had not read the judgment.

“I’m not in a position to comment about that.”

Commenting on the court’s finding that Peters’ decision to dissolve the now reinstated board was irrational‚ Molefe said: “This is a vindication of the decision we took… We are happy that the finding was made by the court.”

On Tuesday Transport Minister Joe Maswanganyi said the department was “studying” the judgment and would make a determination which it will make public.

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