By Lehlohonolo Lehana.
The Passenger Rail Agency of South Africa (Prasa) to reinstate Zolani Kgosietsile Matthews as its chief executive officer.
Matthews had been employed on a five-year, fixed-term contract.
He was fired in 2021 for holding dual citizenship, which the entity said at the time was a material breach of his contract that he failed to disclose.
After he challenged his dismissal, the parties entered into a private arbitration process led by retired Judge Robert Nugent, who ruled in April 2022 that Matthews must be reinstated.
Prasa ignored this ruling and instead applied for a stay of the arbitration award. The rail agency also applied to the labour court to review Nugent’s award.
The labour court, in a judgment handed down, set aside Prasa’s review application and said Matthews’ “fixed contract remains extant [and that] this is not a case where the arbitrator or court would be reviving an expired fixed-term contract”.
The court decision left Prasa in a conundrum, as it now effectively had two CEOs.
However Fullview learnt Prasa chair Nosizwe Nokwe-Macamo has written to Matthews inviting him to a discussion about resuming his job as CEO.
“Considering this decision, PRASA is now in the process of engaging Matthews to discuss the implications of the judgment. The organisation respectfully requests time and space to engage with Matthews accordingly.”
Initially Prasa board said, it was reviewing the judgment handed down by the Labour Court.
“In promoting good governance, the PRASA Board is committed to ensuring that our actions align with legal obligations and the company’s best interests. The Board Of Control (BOC) remains dedicated to ensuring that PRASA builds on its successful rail rebuilding turnaround.
“PRASA is focused on fulfilling its primary mandate of providing rail commuter services and long-haul passenger rail and bus services in the public interest. The BOC continues to discharge its fiduciary duties whilst upholding a high standard of fairness and integrity,” the agency said.
Matthews was appointed by then Minister of Transport Fikile Mbalula. But Matthews was 64, and so he could not take up the position, because he is too old according to the rail agency’s policies.
Section 18 of the policy states that, “Subject to the provisions of the approved Retirement/ Provident Funds, an employee shall retire on attaining the age of 63 years … Employees may, however, on request and with the consent of Management remain in the service after attaining the age of 63 years on contract basis, provided that the operational needs of the Company require that an employee’s services be retained.”