Prasa initiates probe into R18bn tender after Hawks raid
A Passenger Rail Agency of South Africa (Prasa) train seen in Pretoria on 13 July 2015. Picture: Gallo Images / Alet Pretorius
The Passenger Rail Agency of South Africa (Prasa) had initiated an independent forensic investigations into allegations of corruption in connection with two R18 billion tenders for train signalling equipment.
The Hawks swooped in on Prasa's headquarters in Braamfontein on Wednesday afternoon, seizing laptops, mobile phones and a trove of documents of the rail agency's top executives and other employees.
Forensic investigation
Hawks spokesperson Brigadier Thandi Mabombo said the operation was conducted as part of an 'ongoing investigation.'
Prasa spokesperson Andiswa Makanda said the Directorate for Priority Crime Investigation (Hawks) presented a search warrant for its Braamfontein offices.
'Prasa initiated an independent forensic investigation after receiving a submission from a Whistleblower. Documents and information related to this matter were secured through this proactive forensic investigation'.
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'Nothing to hide'
Makanda said the information was 'readily available for sharing with the law enforcement authorities.'
'The Agency has nothing to hide and stands ready to provide complete cooperation to law enforcement authorities. The Agency will continue to implement robust governance measures and maintain the highest standards of accountability while fully supporting all legitimate investigative processes'.
Fraud
Senior officials at Prasa allowed two tenders amounting to almost R18-billion, to be awarded to a company, seemingly without the basic bid criteria being met, according to GroundUp.
A report compiled by a whistleblower alleges Prasa had also fraudulently made advance payments to the company – Maziya General Services – amounting to almost R2.7-billion through five transfers during December 2023 and December 2024.
The allegations are related to two tenders awarded to Maziya General Services.
Tenders
These are for a 'global system for mobile communications-railway redundancy network' in KwaZulu-Natal, Gauteng, and Western Cape (Bid 112), and a 'PRASA train control system' in KwaZulu-Natal (Bid 120).
The tenders were published in November 2021 and October 2022 respectively.
According to the report, the respective tender amounts awarded were R6.3-billion and R11.1-billion.
Transparency
The Chairperson of the Select Committee on Public Infrastructure and Minister in the Presidency, Rikus Badenhorst, said the allegations against the Prasa executives are concerning.
'This highlights a need for transparency and accountability within Prasa. The committee will monitor the developments at Prasa as it is important for the investigation to come to expose the alleged corruption within the entity'.
Badenhorst called on the Minister of Transport, Barbara Creecy, to report back to the committee once investigations into the matter were complete, as the outcome was crucial to resolving one of the key obstacles hindering Prasa's progress on signalling.
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Councils must collaborate with the provincial cooperative governance departments to expedite the processes of appointing skilled municipal managers who have the necessary experience and competency.
