Pretoria: South African law firm, Webber Wentzel, has been appointed to investigate allegations of corruption at the Passenger Rail Agency of South Africa (PRASA). This according to Transport Minister Barbara Creecy who made the announcement during a media briefing on Monday.
According to South African Government News Agency, the allegations stem from media reports that a whistleblower had compiled a report detailing alleged corruption related to two tenders amounting to some R18 billion. These investigations will include both the relevant officials named by the whistleblower as well as board members. The investigation will look into alleged procurement irregularities, alleged fraudulent payments, compliance with bond security requirements, allegations of non-payment of 16 companies, and allegations of awarding unlawful contracts. The investigation will also assess compliance with the legal and regulatory frameworks in relation to the awarding of these contracts.
Creecy added that given the seriousness of the allegations, a preliminary report is expected to be produced within 30 days, ‘if not sooner’. Following a conversation with the chairperson of the PRASA board, Creecy agreed to receive the preliminary report and, based on the findings, advise on further action. It is important that this investigation is conducted speedily to take appropriate remedial action if necessary.
Furthermore, the Auditor General (AG) will conduct real-time audits of all large procurement processes at the entity. Real-time audits are a mechanism that can be implemented during or immediately after a procurement process to prevent and detect weaknesses in controls and to report on these findings quickly. PRASA will adopt this system to enable the accounting officer to take corrective measures to protect resources, prevent fraud or wastage, and ensure that programmes benefit passengers.
The Minister emphasized that the seventh administration has prioritized the recovery of the rail passenger system. The board, management, and workers of PRASA are urged to focus on the recovery of priority lines, rehabilitation of stations, and renewal of signalling to increase train slots and ensure that passengers get to work and school cheaply, safely, and on time. Over the past two and a half years, PRASA has restored train services on 31 out of 40 priority lines and rehabilitated hundreds of stations vandalised during the COVID-19 pandemic. The Minister stressed the importance of continuing this work so that PRASA’s passengers can have the rail system they deserve.