Mr Bongisizwe Mpondo has been appointed as administrator and tasked with turning the struggling organisation around.
Mbalula on December 9 described Mpondo as an “entrepreneur who has an extensive record in corporate governance and working with public institutions to improve operational efficiencies.” Mpondo has served on the boards of the East London Industrial Development Zone, South African Express and South African Airways.
Prasa has struggled for several years, with poor operation and management. The agency has not had a properly appointed board of directors since 2017, when it went through four different boards in one year.
Mbalula cited ballooning irregular expenditure, failing operations, and the auditor-general’s disclaimer on Prasa’s audited financial statements as reasons for the move.
“I have therefore decided to dissolve the interim board and place Prasa under administration with immediate effect,” Mbalula said on December 9. “The administrator will run the affairs of Prasa as a de facto board of control as envisaged in the Prasa founding law and as an accounting authority in terms of the Public Finance Management Act.
“The role of the Group CEO will be integrated into the role of the administrator as an integral part of the intervention. This intervention will continue for 12 months, after which a permanent board will be appointed to run the affairs of Prasa. We will ensure that the process to recruit a permanent board is initiated at least 6sixmonths into the tenure of the administrator to ensure a seamless transition at the end of the intervention.”
Mpondo will sign a contract outlining the terms of reference for his role over the next year. Part of his responsibilities include improving operational performance and reviewing the agency’s organisation and business model. He will also be tasked with implementing the latest recommendations of the Auditor General, and will be able to appoint teams to execute his strategy.