The Passenger Rail Agency of South Africa (Prasa) has terminated CEO Zolani Matthews for the third time, just days after his reinstatement following a favourable labour court ruling.
On Thursday, Prasa’s Board of Control (BOC) announced Matthews’ dismissal, stating that his services had been terminated and he would be compensated for the remainder of his contract. Board chair Nosizwe Nokwe-Macamo emphasized that the decision was made in the interest of Prasa and its passengers, as the agency focuses on reopening rail corridors and refurbishing stations.
“Prasa has made significant progress in restoring passenger rail services, with 31 of the 40 rail corridors now operational, albeit at limited capacity. We must remain focused on our core mandate of safe and cost-effective commuter transport,” Nokwe-Macamo said.
Matthews was initially dismissed in 2021 for holding dual South African and UK citizenship, which Prasa claimed was a breach of security clearance requirements. However, a ruling by retired judge Robert Nugent in April 2022 mandated Matthews’ reinstatement with back pay, citing that dual citizenship was not an issue.
Despite the court ruling, Matthews was fired again before he could resume his duties, this time for “non-performance,” a decision reportedly made on November 29, 2021. The board claimed it was not communicated earlier due to security clearance reasons.
Following a failed attempt to reach an amicable settlement with Matthews and his legal team, Prasa decided to terminate his contract outright. “In compliance with the labour court judgment of July 1, 2024, we reinstated Mr. Matthews and paid him the backdated remuneration as required. Unfortunately, settlement efforts were unsuccessful, leaving us no choice but to terminate his contract,” Nokwe-Macamo added.
The board reassured stakeholders that Prasa is committed to recovering its rail services, focusing on safety, project implementation, and financial management. Prasa is led by a dedicated board and management team, including Acting Group CEO Hishaam Emeran, and continues to pursue significant investments in new lines and trains.
The labour court recently set aside Nugent’s ruling, affirming that Matthews’ contract remains valid. Matthews has demanded over R14 million in remuneration and benefits for the period he was unlawfully dismissed.