Prasa probes corruption in upgrades of yellow trains
Prasa's yellow trains were expected to last another 12 years.
Image: File
The Passenger Rail Agency of SA (Prasa) has appointed a company to quantify the loss in overpayments in its General Overhaul (GO) contract.
This concerns a heavy maintenance initiative to extend the life of the existing yellow trains by nine to 12 years.
The initiative sought to refurbish critical components such as rotating machines, bogies, braking and traction systems, and coach body structures and internal systems.
Responding to a follow-up question from ANC MP Ntombombovuyo Nkopane in the National Assembly this week, Transport Minister Barbara Creecy said consequence management was still in process.
“So far we have terminated one of the seven operational contracts due to breaches and non-performance. Prasa has appointed a service provider to quantify the losses due to overpaid funds, which will inform any further action against contractors,” she said.
Creecy also said the performance and compliance of the remaining contractors was being monitored under a revised governance framework.
This takes place after Prasa commissioned, in 2024, a forensic investigation by law firm Webber Wentzel into allegations of corruption and irregularities in Prasa’s GO contract after receiving a written complaint from one of the contractors.
DA MP Chris Hunsinger asked in his main question the total value of funds awarded to contracts which have been identified as irregular by the Webber Wentzel forensic report and whether any services were delivered by the contractors at all.
Creecy said the investigation reported serious and systematic irregularities in the management of the GO program.
These included corrupt relationships between Prasa employees and GO contractors, systematic overcharging and manipulated invoices, contraventions of the Prevention of Crime and Combating of Corrupt Activities Act, and the Prevention of Organised Crime Act by implicated individuals and contractors.
“Two employees have already been dismissed for wrongdoing and disciplinary hearings continue against 11 other implicated employees in the rolling stock value chain.”
Creecy also said referrals of contraventions of PRECCA and POCA violations to the South African Police Services and the SIU with supporting evidence in instances of overpayment of contractors, civil recovery has been activated and breach notices and termination processes issued where warranted.
Creecy said Prasa was currently using GO coaches and locomotives on non-electrified corridors with 60 coaches already deployed in KuGompo and Gqeberha with planned future deployments in Stanger, Worcester, Hammanskraal and Vereeniging.
Hunsinger asked her if she agreed that the GO contract has not delivered any value for money and that it should be scrapped immediately in light of many metro rail trains rusting in train yards across the country.
In response, Creecy said they were using the trains on non-electrified lines.