By Akani Nkuna
Budget constraints and policy considerations were behind delays in the Moloto Rail Corridor Development Project (MRCDP), according to findings by Public Protector Adv. Kholeka Gcaleka released on Thursday.
“The rail project was ultimately not implemented due to affordability constraints and National Treasury’s lawful refusal of Treasury Approval 1 (TA1), based on insufficient economic justification and value-for-money concerns,” Gcaleka said.
“These decisions were consistent with National Treasury’s statutory mandate under Section 6 of the PFMA. The delays were attributable to legitimate budgetary constraints and policy considerations rather than maladministration or improper conduct.”
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Gcaleka was addressing the media in Pretoria on Thursday, where she outlined findings from a series of investigations conducted by the Public Protector’s office.
The investigation followed a complaint lodged by Sam Masangu on behalf of Moloto Corridor Concerned Residents in October 2020.
The complaint alleged that the National Department of Transport had unduly delayed implementation of the project for more than 20 years. It also alleged the misappropriation and misuse of funds, including money spent on feasibility studies.
Masangu also accused the South African National Roads Agency (SANRAL) of unduly delaying the finalisation of the project.
The investigation found that two feasibility studies had been conducted, one in 2007 at a cost of more than R30 million and another in 2012 at a cost of more than R16 million.
Gcaleka said both studies were procedurally compliant with the Public Finance Management Act (PFMA).
She said the second study, commissioned in 2012, was intended to broaden the scope of the project to include multiple transport-oriented development options aimed at modernising the road while improving its safety and sustainability.
“The commissioning of feasibility studies was justified, necessary, and compliant with applicable legal and policy frameworks, including Section 38(1)(a)(i) of the PFMA and Regulation 16 of the Treasury Regulations,” Gcaleka said.
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She said the MRCDP had been declared a long-term project, with funding yet to be secured.
Gcaleka said a platform had been established for engagement between the complainant and various state departments to improve transparency around the project and ensure progress towards its conclusion.
The report recommends that the ministers of transport and finance take note of the findings and convene annual meetings to report to the Inter-Ministerial Committee on Investment Promotion on the project’s progress.
Gcaleka also recommended that SANRAL implement, strengthen and maintain oversight mechanisms for the project within 90 days of the report’s release.
