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Mbalula Calls for Corporate Governance at Public Transport Entities

June 12, 2019

Department of Transport

12 June 2019

The new transport minister, Fikile Mbalula, has called on the board members and, in particular, chairpersons of public transport entities to ensure that sound corporate governance is a cornerstone of their respective entities.

The minister was speaking at a meeting with chairpersons and CEOs of transport public entities held at the Road Traffic Management Corporation in Centurion.

He added that the entities’ respective founding legislations and the Public Finance Management Act obligate boards to ensure that their entities were managed responsibly and emerging risks mitigated.

“Your duty is not to interfere with the work of the CEOs or advance agendas that only serve to undermine what we seek to achieve. The days of Board members colluding to drive out CEOs only to appoint themselves as Acting CEOs are over.”

The minister emphasized his role as appointing authority and vowed to act against boards that undermined this authority.

“Boards will be subject to rigorous scrutiny and will be held accountable for delivering on the Shareholder Compacts I will be signing with each of you,” he said.

As regards the condition of roads, the minister highlighted challenges in implementing the user pay principle as evidenced with the Gauteng Freeway Improvement Project.

He confirmed that a solution will be found that does not undermine the economy.

The transport department also wants to reposition passenger rail as a mode of choice in the public transport system and address challenges facing PRASA.

“Improving operational performance while we address governance issues is a non-negotiable. This includes unblocking bottlenecks that slow down procurement of capital infrastructure, stabilizing the management cohort and ensure liquidity to honour its debts.”

Other priorities on the minister’s radar included eliminating corruption within the traffic police, corporatization of the National Ports Authority and driving South Africa’s economic agenda in the maritime sector guided by the Comprehensive Maritime Transport Policy.