Probe into PRASA contract irregularities IS continuing
· The South African
The Passenger Rail Agency of South Africa (PRASA) has moved to clamp down on irregularities uncovered in a forensic investigation into key contracts linked to its rolling stock overhaul programme.
The independent probe, conducted by Webber Wentzel Attorneys, examined seven contracts awarded in 2022 under the General Overhaul (GO) Programme.
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The initiative was introduced as a stop-gap measure to extend the lifespan of ageing trains while transitioning to new units from the Gibela Rail Transport Consortium.
Probe triggered by complaint
PRASA said the investigation was launched in April 2024 after receiving a formal complaint from a contractor alleging irregularities in the administration of the programme.
Rather than handling the matter internally, the agency appointed external investigators within a month. A draft report outlining preliminary findings was presented to PRASA’s leadership in November 2024.
Action taken against contractors
Following the findings, PRASA has:
- Frozen payments to contractors implicated in overcharging
- Begun terminating contracts where material breaches were identified
- Placed some contractors on notice
- Strengthened internal financial controls within the programme
The agency confirmed that independent analysis has already identified significant overcharging, with the full amount still being quantified.
Recovery and legal steps underway
PRASA has instructed legal counsel to pursue civil recovery of funds paid to contractors.
At the same time, disciplinary processes have been initiated against implicated employees, including charges of fraud, corruption and financial misconduct. Some individuals resigned after proceedings began.
The agency emphasised that resignation does not absolve individuals of responsibility, with cases referred to the Directorate for Priority Crime Investigation (DPCI) for possible criminal action.
Focus on accountability
PRASA said the investigation and subsequent actions form part of broader efforts to improve governance and ensure accountability as it modernises the country’s rail network.
The process remains ongoing, with civil, disciplinary and criminal proceedings expected to continue as authorities work to recover funds and hold those responsible to account.
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