PRASA terminates Matthews’ contract; sticks with Emeran as CEO

The board of the Passenger Rail Agency of South Africa (PRASA) has terminated Zolani Matthews’ employment with immediate effect.

PRASA fired Matthews as CEO in 2021 for his failure to disclose the fact that he held dual South African/UK citizenship, which would have disqualified him from obtaining the necessary security clearance.

Matthews challenged his dismissal, with an arbitration process finding that he must be reinstated.

The Labour Court subsequently in July dismissed PRASA’s bid to set aside this ruling.

PRASA board chairperson Nosizwe Nokwe-Macamo says the board intended to reach an amicable agreement with Matthews, but all attempts to do so failed, leaving PRASA with no choice but to terminate his contract.

“In compliance with the Labour Court judgment of 1 July 2024, PRASA reinstated Mr Matthews and paid to him the backdated remuneration as contemplated in the ruling.

“PRASA then engaged with Mr Matthews and his legal team to discuss the implications of the judgment and to find a settlement.

“However, given that attempts to reach an agreement have failed, a settlement is no longer an option.”

This lead PRASA to terminate Matthews’ fixed term contract under clause 11.2 of his contract.

Matthews will be paid out for the remainder of his contract, “thereby bringing certainty regarding the leadership of PRASA”, notes Nokwe-Macamo.

“We would like to reassure our passengers and stakeholders that PRASA is firmly focused on delivering on the expectations of our shareholder, the government of South Africa, and the public,” she adds.

“We have a passionate and professional board which has been steering PRASA through difficult times.

“We also have a strong management team led by group CEO Hishaam Emeran and, as the board, we have every confidence in their ability to achieve the strategic objectives of PRASA and manage the current challenges.”