On Now
Weekdays 15:00 - 18:00
The Joyride Nico, Nikki, Kayla and JayBee
NEXT: 18:00 - 19:00 OFM Business Hour with Olebogeng
Listen Live Streams

South Africa

Zondo commission hears Zuma wanted PRASA to keep Montana

───   09:05 Sat, 14 Mar 2020

Zondo commission hears Zuma wanted PRASA to keep Montana | News Article
Transnet chairman Popo Molefe

Former president Jacob Zuma in 2015 tried to intervene to ensure that Lucky Montana stay on as CEO of the Passenger Rail Agency of South Africa (PRASA), despite a raft of corruption allegations against Montana.


This was the testimony of Transnet chairman Popo Molefe, who at the time chaired the PRASA board, on Friday before the Zondo commission of inquiry into the state capture scandal.

The entity is currently under the care of an administrator as it struggles to overcome the loss of billions of rands in the rent-seeking scandal. Montana resigned under a cloud five years ago after he was implicated in procurement irregularities.

Yet Molefe said that after Montana resigned, Zuma and then minister in the presidency Jeff Radebe tried to persuade the board to rescind its acceptance of his resignation.

Montana had handed in his resignation to the board in June 2015 and the board accepted it, but decided that he would remain in the position for several months while the company looked for a suitable replacement.

Molefe said this time was memorable for Montana waging a smear campaign against the board and the rail agency in general, to the point where the board decided to release him earlier.

But, he said, he was then invited to a meeting with Radebe and former transport minister Dipuo Peters on August 20 at the presidential guest house in Pretoria.

Molefe said the start of the meeting was delayed by two hours and he announced that he would be leaving, when he saw Montana and politically connected businessman Roy Moodley emerge from a room with Zuma. He said he was surprised that the president kept him and two ministers waiting while he met with the head of a state-owned enterprise.

"Mr Montana had been in one of the rooms with Mr Moodley. What they were discussing I do not know. I was surprised that they would have had an opportunity to see the president above a chairperson and a minister, also Montana had no standing at PRASA at that moment,”  IOL reported Molefe as saying.

He testified that he was more surprised still that when the meeting finally began, Zuma invited Montana to join in.

Zuma proceeded to praise Montana as a highly qualified individual who was an asset to the government and should be allowed to return to PRASA, he said, adding that the president was adamant that the board should reverse its decision to release him.

"The president said this young man (Montana) is knowledgeable and he has the skills the country needs and, in his view, he should not be lost to the country and some solution should be found for him to use his skill in the organisation.

"The solution he (Zuma) was suggesting was that the decision be reversed. He was asking that it be reviewed. This is an untenable situation and there is no way one could explain it,” Molefe recalled.

Molefe said he tried to explain that Montana had not been fired, but had resigned. 

"My response is that I cannot make a decision in a private space about a decision that was taken by the board. I explained that Montana had not wanted his contract extended. I told him I was happy to host a board meeting where he (Zuma) would explain to the board what his issue with the decision was,” he said.

Molefe said Montana was given a chance to air his grievances and postulated that the board had been appointed to oust him. The meeting finally ended, he said, at around 2am when Zuma drifted off to sleep.

Molefe said he was shocked by the level of attempted interference by the executive.

“The head of state of South Africa and the governing party was now directly attempting to interfere in the matters of the board of PRASA."

Former Public Protector Thuli Madonsela, in her report titled "Derailed" released in late 2015, fingered Montana for maladministration and irregular expenditure involving vast sums.


African News Agency (ANA)

@ 2024 OFM - All rights reserved Disclaimer | Privacy Policy | We Use Cookies - OFM is a division of Central Media Group (PTY) LTD.