PRASA Board members paid R3 million incorrectly but no plan to pay it back

Issued by Manny de Freitas MP – DA Shadow Minister of Transport
23 Oct 2018 in News

A reply to a DA Parliamentary question has revealed that during the 2016/17 financial year, eight PRASA board members incorrectly received a total of R3 million that they were not entitled to. The reply also confirmed that no plan had been made to ensure the millions are paid back to the embattled entity.

This violates Section 38 (c) i-iii of the PFMA of the general responsibilities of the accounting authority (in this case the PRASA board) which in terms of Section 86 justifies criminal proceedings to be instituted.

The breakdown of the incorrect remuneration is as follows:

(a)(i) During 2015/16 no remuneration monies were incorrectly paid.

During 2016/17 the following Board members had remuneration monies incorrectly paid to them:


Employee No.

(b)(i) & (iii)



Amount paid back


Amount Still owed


Payment Arrangement

(e) & (f)

Interest paid

1. R211 420. 92 Not paid back R211 420. 92 None None
2. R358 532. 19 Not paid back R358 532. 19 None None
3. R245 797. 44 Not paid back R245 797. 44 None None
4. R315 028. 27 Not paid back R236 271. 20 None None
5. R324 036. 04 Not paid back R324 036. 04 None None
6. R350 909. 18 Not paid back R350 909. 18 None None
7. R291 941. 62 Not paid back R291 941. 62 None None
8. R 1 077 322. 12 R 1 077 322. 12 None None

This is especially disturbing considering that the entity’s annual report recently released by the Auditor General found R1 billion in fruitless and wasteful expenditure. PRASA’s net loss for the previous financial year was R925 million.

It is clear that PRASA is in shambles and is plagued by scandal after scandal. The DA will formally write to the Minister of Transport, Blade Nzimande, asking why he has not done anything about this situation. It’s clear that these board members are blatantly ignoring their responsibilities and the Minister is protecting them by not acting.

The DA demands that the Minister explain how more than R3 million was wasted on the over payment of PRASA board members’ remuneration and why no plan was made to ensure that this money is repaid.