Trade & Industry

Prasa suspends its ex-acting CEO following serious allegations

The Passenger Rail Agency of South Africa (Prasa) has suspended David Mphelo, its chief information officer, following allegations that he was involved in "irregularities in recruitment and procurement" while acting CEO. Mphelo served as the group's acting CEO for six months before being replaced by Hishaam Emeran on August 30th. Prasa's board said in a

Prasa suspends its ex-acting CEO following serious allegations

Prasa suspends its ex-acting CEO following serious allegations

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Image: PRASA website
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The Passenger Rail Agency of South Africa (Prasa) has suspended David Mphelo, its chief information officer, following allegations that he was involved in “irregularities in recruitment and procurement” while acting CEO.

Mphelo served as the group’s acting CEO for six months before being replaced by Hishaam Emeran on August 30th.

Prasa’s board said in a statement on Thursday that it received a report about “serious allegations” against Mphelo at a meeting on November 9, 2022.

“The allegations against Mphelo involve irregularities in recruitment and procurement amongst others,” said the board.

“Given the gravity and seriousness of the allegations, the board resolved that it is in the best interest of Prasa that Mphelo be placed on suspension with immediate effect pending investigations.”

Many high-profile suspensions and dismissals, as well as fraud allegations, have hit the agency.

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Prasa suspended its acting legal director, Thato Tsautse, on a precautionary basis last month due to allegations of “serious” misconduct.

Its CEO, Zolani Matthews Matthews, was suspended and fired a year ago due to a security clearance issue. The entity stated that Matthews held British citizenship, which was not disclosed. Matthews has filed an appeal against his dismissal.

Transport Minister Fikile Mbalula recently stated that Prasa launched a forensic investigation into “ghost employees” after the entity was unable to verify the existence of 3 000 employees.

Reporting for Business Tech Africa on the funding, tools and strategy shaping the continent's founders and SMEs.

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