PRASA Welcomes The Presidential Proclamation
This past week, South African President Cyril Ramaphosa signed two proclamations authorising the Special Investigating Unit (SIU) to investigate allegations of serious maladministration in the affairs of the Department of Home Affairs and the Passenger Rail Agency of South Africa (PRASA), as well as improper or unlawful conduct by officials or employees of these State entities, with the aim of recovering any financial losses suffered by the State.
In respect of the PRASA-proclamations 153 of 2024
Proclamation 153 of 2024, empowers the SIU to probe offences that were committed against the Prevention and Combating of Corrupt Activities Act of 2004 in connection with the affairs of PRASA in relation to the award of tenders for the supply of various train locomotives to Swifambo Rail Leasing Pty Ltd, and the supply and maintenance of an integrated security access management system at various train stations to Siyangena Technologies Pty Ltd.
The SIU will also investigate serious maladministration in the affairs of PRASA relating to fraudulent liability claims processed and paid by PRASA’s Group Insurance Department, including claims paid as one-time vendor payments. The probe will also extend to the employment of ghost employees identified by PRASA’s Project Zivese in August 2021.
The Proclamation covers allegations of unlawful and improper conduct that took place between 1 January 2010 and 16 February 2024, the date of the publication of the Proclamation or before 1 January 2010 and after the date of the Proclamation that is relevant to, connected with, incidental to the matters or involves the same persons, entities or contracts investigated.
In addition to investigating maladministration, malpractice, corruption and fraud, the SIU will identify system failures and make systematic recommendations to improve measures to prevent future losses.
PRASA welcomes the Presidential Proclamation
In a media statement issued by PRASA on 19 February 2024; PRASA welcomes the Presidential Proclamation authorising the Special Investigating Unit (SIU) to investigate allegations of corruption, malpractice and maladministration within PRASA, as well as improper and unlawful conduct by any PRASA employees.
PRASA-Proclamation 153 of 2024 empowers the SIU to probe offences that were committed in relation to the award of tenders to Swifambo Rail, for the supply of locomotives and the supply and maintenance of an integrated security access management system to Siyangena Technologies, in terms of the Prevention and Combating of Corrupt Activities of 2004.
The SIU will also investigate fraudulent liability claims processed and paid by PRASA’s Group Insurance Department, and allegations regarding ghost workers at the organization. These two issues were already the subject of internal investigations. PRASA’s Board of Control believes that the investigations will further enhance clean and effective governance within the entity and eradicate corruption within the organization.
The Board believes that a great deal of progress has been made in eradicating corruption within the entity and promoting behaviour that is professional and lawful. By combating corruption, PRASA can better fulfil its mandate of providing reliable, efficient and affordable train services to the people of South Africa.
The Board urges all PRASA employees to cooperate fully with the SIU investigations.