By Thebe Mabanga
The Passenger Rail Agency of South Africa (Prasa) has been hauled back to court over a R1.2 billion payment claim by contractor Siyangena Technologies arising from a disputed R5.1 billion contract dating back more than a decade.
In court papers filed earlier this year, Siyangena Technologies argues that it is owed the amount, plus interest, to enable it to settle its suppliers.
The company has indicated it is prepared to forgo any profit linked to the contract.
Prasa has already paid about R2.9 billion under the agreement, which ran until May 2016.
The state-owned entity filed its intention to oppose the latest claim on 11 March this year, with no subsequent developments recorded on the matter.
The contract, valued at R5.1 billion, stems from preparations for the 2010 FIFA World Cup in South Africa.
It related to the Integrated Security Access Management System (ISAMS), which included access control gates, public address systems and electronic display boards across about 150 stations in Gauteng, KwaZulu-Natal and the Western Cape.
The dispute dates back to 2018, when Prasa approached the High Court to have the contract set aside on the grounds that it was irregularly awarded.
The court ruled in Prasa’s favour in October 2020, and Siyangena’s appeal against the decision was dismissed in 2022. The contract is among several being investigated by the Special Investigating Unit (SIU).
In its ruling setting aside the agreement, the Gauteng High Court ordered that an independent engineer be appointed to determine the value of work actually delivered, and whether any party is owed additional funds or must repay monies received.
A court-appointed engineer, Errol Braithwaite, who has more than 30 years’ experience in civil engineering, assessed the project and concluded that the work was worth R5.1 billion, excluding VAT, stock held in storage, and financing costs, including interest from invoicing to payment.
Braithwaite described the work as being of high technical competence and international standard, and said it was comparable to the Gautrain project, which includes 10 stations along an 80km route, while Siyangena’s system spans about 150 stations across multiple provinces.
However, Prasa has rejected the assessment and is challenging Braithwaite’s report.
The agency maintains that the installed equipment was substandard and not fit for purpose.
Prasa further argues that the engineer did not adhere to the terms of the court order appointing him and failed to properly verify the accuracy and integrity of the data provided.
Prasa had not responded to questions sent since last week at the time of publication.
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