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Explosive report into Prasa contracts

Explosive report into Prasa contracts

eNCA2 days ago

CAPE TOWN - A draft forensic report by law firm Webber Wentzel into Prasa reveals disturbing corruption at Passenger Rail.
It shows how the state owned entity has been bleeding money on sub standard contracts,
some of which were unnecessary and others that were never completed.
WATCH | Open Secrets wants Hawks to finalise PRASA investigation findings
A News24 article has detailed how Prasa was overcharged, defrauded, and exploited,
with findings that some contractors over-inflated prices by 2000% .
The report has also found that some trains are being repaired only to be left at depots.
These repairs have already cost the entity R2.5 billion rand.
Following the explosive report, ActionSA has written to the Transport Minister demanding accountability.

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Explosive report into Prasa contracts
Explosive report into Prasa contracts

eNCA

time2 days ago

  • eNCA

Explosive report into Prasa contracts

CAPE TOWN - A draft forensic report by law firm Webber Wentzel into Prasa reveals disturbing corruption at Passenger Rail. It shows how the state owned entity has been bleeding money on sub standard contracts, some of which were unnecessary and others that were never completed. WATCH | Open Secrets wants Hawks to finalise PRASA investigation findings A News24 article has detailed how Prasa was overcharged, defrauded, and exploited, with findings that some contractors over-inflated prices by 2000% . The report has also found that some trains are being repaired only to be left at depots. These repairs have already cost the entity R2.5 billion rand. Following the explosive report, ActionSA has written to the Transport Minister demanding accountability.

Ghost workers drain billions from public funds
Ghost workers drain billions from public funds

The Citizen

time2 days ago

  • The Citizen

Ghost workers drain billions from public funds

Ghost employees are being paid with taxpayer money, costing South Africa billions. This corruption must be rooted out with national audits and criminal prosecutions. The biggest problem facing public administration in South Africa – and the biggest opportunity for looters – is the lack of financial controls and even basic information on the government workforce. That is why it appears to have been a lucrative scam to create 'ghost workers' and then divert their salaries into the thieves' wallets. With a government salary bill of nearly R800 billion in this financial year – and a further R85 billion which is earmarked for employees in state-owned enterprises – the civil service is one fat cow waiting to be milked by the unscrupulous. Estimates are that there are probably tens of thousands of these bogus workers being paid like clockwork with taxpayer money… and that money, which probably runs into the billions, is what should be used for good works, development or even just to keep people from starving. The scale of the actual and possible looting is eyewatering. ALSO READ: How many ghost workers are there in government? The elimination of ghost workers at the Passenger Rail Agency of SA (Prasa) alone saved it R200 million. The Association of Certified Fraud Examiners estimates that ghost employees account for 8% of occupational fraud cases worldwide and experts believe this percentage could be even higher in South Africa, especially in government ranks, because of the lack of control and accountability. Other than Prasa, multiple cases of ghost workers have been revealed in sectors ranging from municipalities to government departments at provincial and national level. It is to be welcomed that President Cyril Ramaphosa has ordered the Special Investigating Unit to probe the ghost worker problem at Prasa… but it must go much further than that. Government directors-general must be told to audit their areas and if discrepancies are found, they must be dealt with. ALSO READ: More than R140 million in salaries paid to suspended government employees Anyone involved in these scams must be prosecuted and locked up because this is economic terrorism, plain and simple.

Nsfas R2.5m head office delays prolong terminating lease
Nsfas R2.5m head office delays prolong terminating lease

The Citizen

time4 days ago

  • The Citizen

Nsfas R2.5m head office delays prolong terminating lease

The current Nsfas leadership has distanced itself from the controversial agreement The National Student Financial Aid Scheme (Nsfas) continues to pay R2.5 million monthly for its headquarters, as legal delays prolong the termination of an alleged irregular lease agreement. The student funding agency recently disclosed that judicial scheduling constraints have pushed back the critical court application to set aside the contentious lease beyond the initially planned April 30 deadline, prolonging the financial burden on the cash-strapped organisation. Nsfas legal battle continues with SIU support The scheme is working with the Special Investigating Unit (SIU) to pursue a lease cancellation in court. 'Nsfas has engaged extensively and is cooperating fully with the Special Investigating Unit regarding the lease termination process,' the organisation said. The student aid scheme emphasised its alignment with the SIU's legal strategy, declaring that it 'would comply with any court decision on the matter' while working as a co-applicant in the unit's application to void the lease. ALSO READ: Nsfas recovers over R850 million following SIU probe Parking spots costing millions Beyond the substantial monthly rental payments, Nsfas acknowledged additional concerns surrounding parking facilities at the headquarters, which carry a five-year price tag of R18.6 million. The agency defended the current payments as unavoidable contractual commitments established when the lease was originally executed. 'Nsfas confirmed that it pays a monthly rental of R2.5 million, in accordance with the existing lease agreement with the landlord,' officials stated, noting that 'this amount reflects contractual obligations negotiated at the time of signing.' ALSO READ: Higher education minister withdraws appointment of Seta board chairpersons Nsfas board distances itself from previous decisions The current Nsfas leadership has distanced itself from the controversial agreement, emphasising that the lease arrangement preceded the board's appointment. Despite this, board members acknowledged their duty to address inherited problems. 'While this lease predates the appointment of the current Nsfas Board, the Board remains committed to its core mandate of implementing a comprehensive turnaround strategy founded on transparency, accountability, and fiscal responsibility.' Reform strategy underway The agency outlined extensive measures being implemented to prevent similar situations in the future. As part of this strategy, the scheme vowed to uphold a zero-tolerance policy towards wastage, fraud, and corruption. Nsfas added that 'any irregular contracts will be terminated in strict adherence to established due process.' ALSO READ: SIU launches probe into National Skills Fund Contingency planning for relocation Anticipating an eventual successful lease termination, Nsfas revealed it has begun developing backup plans to ensure seamless operations during any potential headquarters transition. The preparations form part of a broader organisational restructuring initiative. The scheme explained that contingency arrangements 'aim to minimise operational and staff disruptions' while the organisation collaborates 'with relevant stakeholders to finalise arrangements.' The relocation planning aligns with Nsfas' wider regionalisation objectives, designed to enhance both operational effectiveness and service delivery to students across the country. Broader legal action against irregular contracts The headquarters lease represents just one component of Nsfas' extensive legal campaign to address questionable agreements inherited from previous administrations. According to a May 7 presentation to parliament's higher education portfolio committee, the agency is pursuing multiple contract cancellations in court. The organisation confirmed it has begun implementing recommendations from both the Auditor-General and the SIU as core elements of its institutional transformation Programme. These reforms encompass technology system improvements, enhanced contract oversight, and strengthened internal governance mechanisms. ALSO READ: No party favourites: Minister defends appointment of Mantashe's son to Seta board Future vision despite current challenges Despite ongoing financial and legal complications, Nsfas leadership maintained its commitment to the organisation's fundamental mission of supporting disadvantaged students' educational aspirations. 'Nsfas envisions a future where every eligible student, regardless of background, has equitable access to transformative education,' officials stated in their recent parliamentary report. The agency asked for patience as it navigates the complex legal and administrative processes required to resolve inherited irregularities. 'Nsfas remains committed to transparency, good governance, and responsible management as we undertake these critical reforms. We thank the public and all stakeholders for their continued support and understanding,' the organisation declared. READ NEXT: Higher Education and Nsfas vow action amid Durban student protests

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