PRASA Scandal Deepens: R7. 5 Billion Rail Project centre of focus
Image: Jacques Naude/Independent Newspapers
A high-level investigation into procurement irregularities at the Passenger Rail Agency of South Africa (PRASA) has intensified, following a dramatic raid by the Hawks at the agency's Braamfontein headquarters.
While public attention has largely focused on Maziya General Services following the release of a whistleblower report, mounting evidence now suggests that some of PRASA's most serious procurement failures — costing taxpayers billions — may lie elsewhere. On Wednesday, the Hawks' Specialised Commercial Crime Unit, supported by the National Prosecuting Authority's Specialised Commercial Crime Unit, executed a search-and-seizure operation.
Laptops, mobile phones, and documents were taken from four of PRASA's top executives: CEO Hishaam Emeran, acting chief procurement officer Asif Rehman, head of legal Nompumelelo Gamedze-Phasha, and chief financial officer Brian Alexander.
Brigadier Thandi Mambo, spokesperson for the Hawks, confirmed that the operation formed part of an ongoing investigation, but declined to comment further. 'To protect the integrity of our investigation, we cannot disclose details at this time,' she said.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
Sources familiar with the matter say that Maziya's contracts went through all required internal processes, including evaluations by the Bid Evaluation Committee (BEC), Board Adjudication Committee (BAC), and the Executive.
Notably, Maziya's work appears to be one of the few bright spots in PRASA's recent efforts to restore passenger rail services.
Maziya has been actively involved in rehabilitating key corridors in Gauteng and the Western Cape. Trains are now running along previously dormant routes, and infrastructure upgrades are visibly in progress. In contrast, another massive PRASA project — unrelated to Maziya — valued at R7.5 billion, appears to have stalled completely.
That project, which has already consumed R2.5 billion in public funds, was meant to refurbish trains and improve network reliability. Instead, many of the trains procured remain idle, in disrepair, or have been discarded entirely.
With no clear operational outcomes, the R7.5 billion deal is increasingly viewed by insiders as one of the most costly and unproductive contracts in recent memory. Now, PRASA is reportedly exploring the option of cancelling that contract.
However, legal experts are warning that such a move could trigger far-reaching consequences.'Terminating a contract of this size and complexity isn't something that can be done lightly,' said Mesela Nhlapo, CEO of the African Rail Industry Association.
'Even if there were procurement irregularities, the agency could face massive financial penalties or protracted litigation. These contracts often contain strict arbitration clauses and early termination fees.'
Nhlapo added that the implications for the rail industry are broader than just this case. 'This is one of the biggest financial missteps in South Africa's recent transport history. The reputational and operational damage to PRASA and the country's commuter rail system is enormous. Investors and industry players are watching closely.'
PRASA, for its part, has acknowledged receipt of the whistleblower's report and confirmed it will appoint an independent panel to investigate.
'The board takes the allegations seriously,' said PRASA spokesperson Andiswa Makanda. 'In line with our whistleblower policy, the first step will be to appoint an independent investigator.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
TimesLIVE
14 hours ago
- TimesLIVE
JSC endorses tribunal findings of gross misconduct against judge Makhubele
The Judicial Service Commission (JSC) on Friday confirmed the January findings by the judicial conduct tribunal that Gauteng high court judge Nana Makhubele was guilty of gross misconduct. The commission has resolved to refer the matter to the speaker of the National Assembly to recommend removal proceedings for the judge in terms of the constitution. The commission, without the MPs, met in July to consider the contents of the report of the tribunal, which had inquired into allegations of judicial misconduct against Makhubele after a complaint by #UniteBehind, a coalition of movements comprising various nonprofit organisations. The complaint was made as Part A and Part B. Part A concerned Makhubele's acceptance of appointment and provision of services as a chairperson of the interim board of the Passenger Rail Agency of South Africa (Prasa) after she was appointed a judge with effect from January 1 2018. Part B related to Makhubele's conduct during her tenure as chairperson of Prasa, that she failed to act honourably and avoid the appearance of impropriety and acted in a manner unbecoming of judicial office. TimesLIVE reported that the complainant said during her time as chair, she pushed through the settlement of claims worth about R59m for companies in the Siyaya group, owned by Makhensa Mabunda, and on terms very favourable to the group. Mabunda was politically connected to former Prasa CEO Lucky Montana, who the state capture commission's report has recommended for prosecution arising out of tenders he awarded at Prasa. The settlement of the claims went against legal advice from her own legal affairs division, which she sidelined, #UniteBehind alleged. In its decision, the tribunal said there was no record of the board taking a resolution to settle these claims. The tribunal found Makhubele guilty of gross misconduct in parts A and B of the complaint. Before considering the matter, the commission — constituted without the MPs — called for written representations from Makhubele and #UniteBehind — and both parties filed representations. Makhubele denied the allegations in the complaint and alleged that Gauteng judge president Dunstan Mlambo had consented to her starting her appointment as a judge in April 2018 rather than her official appointment date of January 1 2018. The tribunal had found that Makhubele's version that Mlambo had agreed she would not commence her duties as a judge on January 1 2018 was most unlikely. 'In the commission's view, the facts set out in the tribunal's report clearly support the conclusion that judge Makhubele is guilty of gross misconduct in respect of the allegations set out in Part A,' the commission said in its report on Friday. The commission also found the evidence on which Makhubele was found guilty in terms of Part B clearly established gross misconduct in the form of dishonesty.
The Citizen
14 hours ago
- The Citizen
Cops charged with kidnapping Chinese national out on bail
The officers each face charges of kidnapping, corruption and defeating the ends of justice. Two Gauteng police officers accused of unlawfully detaining and extorting a foreign national have been granted R1 000 bail each. Constable Gift Mncedi Nteso, 33, and reservist Constable Seipati Mofokeng, 39, appeared in the Vereeniging Magistrate's Court on Friday following their arrest on Tuesday. They allegedly detained a Chinese national at the Sharpeville police station and demanded R3 000 ransom from family members in order to secure the victim's release. They each face charges of kidnapping, corruption and defeating the ends of justice. Hawks investigates tip-off According to the Justice, Crime Prevention and Security Cluster (JCPS), a senior police official informed the Vaal Rand-based Serious Corruption Investigation unit of the Directorate for Priority Crimes Investigation (Hawks) of the arrest. 'An investigation was immediately launched and verbal 252A authorisation (entrapment) was secured from the Directorate of Public Prosecutions in Pretoria to monitor the transaction,' JCPS said in a statement. ALSO READ: Former Northern Cape cop jailed for housebreaking Before Nteso and Mofokeng could collect the full amount, the Hawks were informed that a R1 000 payment had been made and the victim had been released. They allegedly released the Chinese national without filing any formal record of arrest at the police station. Police officers arrested at police station Hawks spokesperson Warrant Officer Thatohatsi Mavimbela said the investigating team went to the Sharpeville police station to execute the arrest. 'The two suspects were arrested after failing to provide satisfactory reasons as to why the Chinese national was arrested and released with no record,' Mavimbela said. Nteso and Mofokeng are expected to appear in court again on 1 September. NOW READ: Chinese nationals fined R400k for abalone worth almost R2m
The Citizen
16 hours ago
- The Citizen
Hawks push ahead with Polokwane Municipality corruption case
POLOKWANE – The corruption probe into the affairs of the Polokwane Municipality will continue despite a key segment of the broader investigation being struck off the Limpopo High Court roll in the city on Tuesday due to interlocutory issues. This assurance came from the head of the Hawks in Limpopo, Maj Genl (Adv) Gopz Govender, who spoke to Polokwane Observer shortly after Judge Jane Ngobeni ruled that the Directorate for Priority Crime Investigation (DPCI) was not positioned to proceed with an urgent application compelling the municipality to hand over its gift register. The register was to be examined for potential irregularities involving Mayor John Mpe and his Makoro Foundation. Read more: Court strikes Hawks' Polokwane gift register bid Ngobeni ruled it fair to allow all legal respondents, including legal representatives of Mpe, his foundation, the municipality and municipal manager Thuso Nemugumoni, to first finalise a related interlocutory application also before the court. The Hawks have since indicated their intention to re-enrol the urgent application within the next month, anticipating that the other matter will have been resolved by then. This development comes in the wake of explosive claims circulating on social media, alleging that over R700m in municipal tenders were irregularly awarded to relatives and associates of Mpe and Nemugumoni. Read more: Polokwane mayor faces deadline over tender kickback claims The municipal manager also faces allegations of awarding a R56m tender to a Zimbabwean national with which she reportedly has close ties. Mpe, while conceding the foreign-owned company had likely been paid through a joint venture with a local entity, in recent weeks denied any wrongdoing. As speculation intensifies, the municipality's leadership has dismissed the allegations as a political witch-hunt aimed at undermining Mpe's leadership and the foundation's achievements. Govender, however, stressed that the Hawks' investigation is impartial and driven by evidence, and not public opinion or political pressure. You might also want to read: ActionSA opens corruption case against Polokwane mayor 'Our investigation is not about targeting individuals or being influenced by public commentary. What goes to court is not information or intelligence, but evidence, and we are confident in the evidence we've gathered,' he stated. Mpe did not respond to Polokwane Observer's request for comment by the time of publication.
