Cape Town - The DA wants new Transport Minister Sindisiwe Chikunga to explain why Passenger Rail Agency of SA (Prasa) board chairperson Leonard Ramatlakane continues to use a house in Newlands that’s owned by the state-owned entity.
Ramatlakane has reportedly occupied, since December, a Prasa-owned house for way less than the market-related rental, while his own house is being renovated in the north of the city.
It’s not the first time Ramatlakane has been in the news for issues relating to houses. Ramatlakane said that if the Cape Argus didn’t understand the issue around the lease, then it shouldn’t ask him questions. He hung up and, via WhatsApp, said he would issue a statement this week.
According to reports, Ramatlakane leased a market-related rental that includes paying electricity and water bills. He moved to the house in December.
DA MP and party spokesperson on transport, Chris Hunsinger, called on Chikunga and the Prasa board to be summoned to appear before the transport committee to account for the alleged abuse of Prasa-owned property by Ramatlakane.
Prasa reportedly doled out R2.5 million remodelling the Newlands home so that company executives could stay there when travelling on business without having to pay for hotel rooms.
Hunsinger said: “Ramatlakane and the Prasa board should provide details regarding who authorised this misuse of property for personal gain, as well as whether or not the occupation should be disclosed to the South African Revenue Service as a fringe benefit.”
He said Prasa had suffered significant financial losses recently, and the auditor-general's most recent audit opinion “paints a picture of an organisation that cannot account for how its funds are spent”.
“The DA acknowledges the Prasa board’s decision to launch an internal investigation, but demands that Ramatlakane be suspended pending the inquiry’s conclusion,” he said.
“Accountability is a hallmark of a functioning democracy, so the legislature has a duty to act quickly to stop such egregious misuse of taxpayers’ money.”
The provincial standing committee on public accounts was asked by the DA in 2007 to investigate allegations that Ramatlakane, who was the Community Safety MEC at the time, had an interest-free loan of R122 000 from his department to pay tax on the R656 000 the department paid him for using his private vehicle for official trips.
According to an IOL report from 2006, Ramatlakane survived an attempt in the provincial legislature to remove him from the provincial executive, and was forced to promise to pay back nearly R250000 he overspent on beefing-up security at his private home.
Ramatlakane spent R347 716 upgrading his home security, despite MECs being entitled to spend only R100 000 at the time.