Just hours after Letsoalo defended his remuneration package on Monday, the rail agency’s board took a decision to terminate his employment with immediate effect.
Letsoalo maintains that the Sunday Times article claiming he increased his salary by 350% is untrue and is part of a malicious campaign to discredit him.
Letsoalo held a press briefing in Pretoria on Monday to explain that his salary is above board.
But later Prasa dismissed him.
Prasa spokesperson Nana Zenani says no board resolution was adopted regarding such a salary increase, nor payment of an annual salary package of R5.9 million.
In a statement released on Monday evening, Prasa confirmed Letsoalo's official salary was R1.3 million, which was approved by Transport Minister Dipuo Peters - as the terms of the secondment package.
Letsoalo went to great lengths on Monday to state that the Sunday Times article was a media assault on his character, but insisted that he would not be discouraged.