The Passenger Rail Agency of South Africa (PRASA) has provided an update on an independent forensic investigation into irregularities in seven contracts awarded for the refurbishment and extension of the service life of the agency’s legacy rolling stock fleet.
The investigation by Webber Wentzel Attorneys was commissioned to probe the General Overhaul (GO) Programme contracts signed in 2022.
The programme was launched as a strategic bridging solution to maintain commuter rail services during the transition from the legacy yellow fleet of trains to the new Gibela Electric Multiple Units (EMUs).
Its purpose was to ensure a safe and uninterrupted transition from old to new rolling stock.
“In April 2024, PRASA received a written complaint from a GO contractor alleging irregularities in how the programme was being administered.
“Rather than dismissing the complaint or handling it internally, together with project management concerns, we acted decisively: within one month of receiving the complaint, PRASA formally engaged Webber Wentzel Attorneys to conduct an independent investigation,” the agency said on Tuesday in a statement.
On 29 November 2024, Webber Wentzel presented its preliminary findings to the PRASA Group CEO.
This was presented as a ‘Draft Report’, which is standard practice for a forensic investigation.
A draft was provided to allow PRASA to review its contents, verify factual accuracy, and enable affected parties to respond before findings are finalised.
PRASA's current position on the GO Programme is as follows:
- Payments to contractors implicated in overcharging have been frozen pending the outcome of the invoice review.
- Contractors against whom material breach has been established are being formally terminated — some are no longer part of the programme, and two are currently on 30-day notice.
- Strengthened financial management and internal control systems are being implemented for the GO Programme.
“PRASA has instructed specialist legal counsel to pursue the civil recovery of funds overpaid to contractors. Independent expert analysis has confirmed significant overcharging across multiple contractors, with the full quantum of recoverable funds still being quantified as part of the ongoing civil and disciplinary processes.”
The disciplinary and criminal proceedings that are a prerequisite for formal recovery action are actively progressing.
Formal disciplinary proceedings — including charges of bribery, corruption, fraud, financial misconduct and policy violations — were instituted against the implicated employees before they departed from the organisation.
“In both cases, the employees concerned chose to resign after disciplinary processes had been formally initiated. Additional disciplinary proceedings affecting other employees are underway. Resignation does not constitute exoneration, nor does it extinguish liability — criminal, civil or otherwise.
“The referral of implicated individuals' conduct to the Directorate for Priority Crime Investigation (DPCI), and the pursuit of civil recovery proceedings, are not contingent on continued employment status. These processes are active and ongoing,” PRASA said. -SAnews.gov.za
