PRASA Terminates Employment of Zolani Matthews Following Labour Court Ruling

PRASA Board Chairperson, Nosizwe Nokwe-Macamo, stated that the termination was in line with Matthews's contract and made in the best interest of PRASA and its passengers.

The Board of Control (BOC) of the Passenger Rail Agency of South Africa (PRASA) has announced the immediate termination of Zolani Matthews’s employment as Group Chief Executive Officer (GCEO). This decision comes after Matthews was reinstated last month in compliance with a Labour Court judgment.

PRASA Board Chairperson, Nosizwe Nokwe-Macamo, stated that the termination was in line with Matthews's contract and made in the best interest of PRASA and its passengers. The rail agency is focused on reopening rail corridors and refurbishing stations to restore South Africa's passenger rail services.

"PRASA has made significant progress in getting South Africa’s passenger rail service back on track, with 31 of the 40 rail corridors opened and functioning at limited capacity. The Board cannot afford to be distracted from delivering on PRASA’s core mandate of transporting commuters safely and cost-effectively," said Nokwe-Macamo.

Matthews was originally terminated in December 2021 after an investigation revealed he had failed to disclose material information regarding his dual citizenship. Despite this, retired judge Robert Nugent ruled in arbitration that PRASA should reinstate Matthews with back pay, a ruling that was upheld by the Labour Court in July.

Following the Labour Court's ruling, PRASA engaged in discussions with Matthews and his legal team to reach a settlement. However, these discussions were unsuccessful, leading PRASA to terminate Matthews's contract under clause 11.2. Nokwe-Macamo confirmed that Matthews would be paid out for the remainder of his contract to provide certainty in PRASA’s leadership.

PRASA is committed to continuing its efforts to recover rail services in South Africa, with significant strides already made in passenger safety, project implementation, and modernization efforts. Nokwe-Macamo reassured passengers and stakeholders that PRASA is in capable hands with GCEO Hishaam Emeran and a dedicated management team at the helm.

PRASA is also advancing investments in multibillion-rand projects, including the opening of new lines and the introduction of new trains, as it strives to meet the expectations of its shareholders and the South African public.