The Passenger Rail Agency of SA (Prasa) has vowed to act on findings of financial mismanagement, tender irregularities and maladministration made against the agency by the Public Protector last month.
Prasa board chairperson Popo Molefe said Thuli Madonsela’s findings were made after a lengthy investigation.
“She applied her mind during the long investigation and what she came out with were substantial findings, not allegations. We are going to act on those on a case-by-case basis, based on merit.”
Molefe said as part of the remedial actions on the findings, the board had directed management to strengthen internal controls and overhaul the supply chain management structures.
“We have also requested the National Treasury to second an experienced procurement officer to Prasa while we restructure our procurement management systems.”
The state entity was considering taking appropriate legal steps in respect of some of the remedial actions recommended by the Protector.
Internally, these include the application of the disciplinary code of the company and dealing with the employees implicated in the wasteful and fruitless expenditure.
“All irregularly awarded contracts that were investigated in the report have been suspended and management will engage with relevant parties where appropriate. Issues dealing with the illegal suspension of employees continue to be addressed,” said Molefe.
An academic qualifications verification audit would begin immediately after it was found that some Prasa senior managers had falsified and misrepresented their qualifications.
The audit would be conducted by the SA Qualifications Authority (SAQA).
Molefe said Prasa remained committed to ensuring the roll-out of a modern passenger rail system of the future.
He confirmed that the new Afro4000 locomotives procured from Spain for R600-million were too tall.
“The locomotives are too tall and fall outside Transnet’s specifications. However, both Prasa and Transnet engineers are working together on that matter and the locomotives are undergoing a series of tests under the rail safety regulator. We will wait for the regulator’s announcement,” concluded Molefe.
Former Prasa group CEO Lucky Montana and former head of engineering Daniel Mthimkhulu had been at pains, before leaving Prasa, to explain that the locomotives were suitable for the country’s railway environment.
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