SIU wants proclamation to probe Prasa

The Special Investigating Unit (SIU) is seeking a new proclamation to investigate serious maladministration and improper conduct at Passenger Rail Agency of SA (Prasa). Picture: Jacques Naude/African News Agency(ANA)

The Special Investigating Unit (SIU) is seeking a new proclamation to investigate serious maladministration and improper conduct at Passenger Rail Agency of SA (Prasa). Picture: Jacques Naude/African News Agency(ANA)

Published May 17, 2023

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Cape Town - The Special Investigating Unit (SIU) is seeking a new proclamation to investigate serious maladministration and improper conduct at Passenger Rail Agency of SA (Prasa).

This was revealed on Tuesday by the SIU’s Mike Koya when he briefed the standing committee on public accounts (Scopa) on the work that they have done at the entity.

“SIU is busy with a motivation submitted to the Department of Justice for a new proclamation.

“It (new proclamation) will deal with matters reported in the Zondo Commission. The motivation is sitting with the Department of Justice,” Koya said.

The proposed proclamation comes hot on the heels of the completion of an investigation of another proclamation.

“We are busy reviewing the presidential report which should be with the president by June 30,” he said.

The SIU has made a litany of referrals for disciplinary action, criminal investigations, action to be taken against service providers and former board members.

Some of the findings were against former accounting officers who were no longer in the employ of Prasa.

A presentation to Scopa showed the proclamation, emanating from the Zondo Commission report, will consider whether any of the individuals, companies or close corporations to be investigated were investigated under a previous proclamation or were under investigation.

Koya said that the focus areas of the new investigation would include irregular salary increase to former Prasa CEO Collins Letsoalo, procurement of locomotives from Swifambo Rail Leasing and Siyangena Technologies.

He said the focus would be on the recovery of money lost by Prasa.

“We are busy working with the Directorate of Priority Crimes in terms of managing investigations as they are doing criminal investigations.

“There is sharing of information with documents we have.”

Koya also said that they would also focus on procurement of companies linked to KwaZulu-Natal businessman Roy Moodley such as Royal Security and related companies.

“We did investigate Royal Security under the previous proclamation but there is a number of firms owned by the Moodley family.

“That will also be part which will broaden the scope not only to look at Royal Security.”

He said the SIU would also look into serious maladministration at Prasa.

“We will look at the overall governance at Prasa, which led to Prasa to be at that space as reported in the State Capture Commission.

“These are all matters that are part of motivation.”

According to Koya, irregular and improper conduct by officials or employees of Prasa will also come under scrutiny and any evidence of malfeasance and irregular activities would be referred to Prasa for disciplinary processes.

There will also be referral of evidence of criminal activities to the National Prosecuting Authority for prosecution and instituting and conducting civil proceedings in the Special Tribunal to recover any loss suffered by Prasa.

He indicated that SIU head Andy Mothibi met the Presidency to discuss the proclamation and to get progress on the authorisation of the proclamation and other areas that were reported in the Zondo Commission.

Meanwhile, Prasa has engaged the SIU to assist in conducting lifestyle audits.

They will start on June 1, 2023 with Phase 1 focusing on group executives and will continue for eight months, according to the SIU presentation.

The lifestyle audit will cover about 300 personnel, including members of various business units such as Autopax, regional executives and senior management.

“Where the lifestyle audit identifies that an employee’s expenditures constantly exceed his/her income, and it cannot be explained, those findings must be referred for investigations by the relevant division.

“In respect of those matters that may require further investigation by the SIU in terms of a proclamation issued by the president, such matters must be referred to the SIU for further processing; and submit a report to the board of control of Prasa detailing the findings of the audit.”

Cape Times