SA rail agency under fire
Passenger Rail Agency of South Africa audit reveals wasteful spend.
The Passenger Rail Agency of South Africa (Prasa) has been labelled the biggest irregular spender in government. Shocking findings revealed a number of fraudulently acquired tenders and irregular spending running into the billions of Rands.
In a report from the Auditor General, Kimi Makwetu, it was established that R14.6 billion was lost in irregular spending. Added to this were claims that senior Prasa officials destroyed important documents during Makwetu’s investigation. News of the Auditor General’s report prompted the company to launch their own investigation, which found cases of tender fraud and corruption amounting to R24-billion.
Prasa Chairman, Popo Molefe and acting Chief Executive, Collins Letsoalo, appeared before the Standing Committee on Public Accounts (Scopa) this week and said officials who had allegedly destroyed documents have either been disciplined or have left the company.
Letsaolo admitted that Prasa has ‘a problem’.
However, he added that they were ‘sorting it out’. According to Letsaolo, at least four cases identified through the audits, have elements of criminality and have been handed over to elite SAPS unit, the Hawks.
Attorneys have been instructed to complete the forensic audit by June 2017.
