By Simon Nare
Transport Minister Barbara Creecy has ordered an independent forensic investigation into alleged unlawful procurement processes at the Passenger Rail Agency of South Africa (PRASA) following reports of procurement irregularities and alleged criminal infiltration of the agency’s infrastructure projects worth billions of rand.
Creecy and PRASA executives appeared before the National Council of Provinces (NCOP) Select Committee on Infrastructure on Tuesday to respond to allegations of procurement bypasses, multi-billion-rand corruption and organised criminal involvement in rail infrastructure projects.
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However, Creecy told the committee that, because an independent investigation had now been initiated, neither she nor PRASA management could comment on the specific allegations. They remained available to answer questions relating to the agency’s governance.
The investigation follows weekend reports alleging that organised crime syndicates infiltrated PRASA’s Cape Town Central rail project, allegedly destabilising surrounding communities through violence to secure security subcontracting work.
Reports further alleged that PRASA bypassed normal procurement processes by using an Airports Company South Africa (ACSA) security panel established in 2021, allowing a politically connected company linked to an ANC veteran to secure contracts worth between R16 million and R18 million a month to protect rail infrastructure that was later vandalised.
Addressing the committee, Creecy said she had acted immediately after the allegations emerged.
“Following the allegations, I wrote yesterday (Monday) to the chairperson of the board and requested that the board immediately appoint an independent forensic investigation company to examine the procurement processes relating to this contract, its legality, contract administration, and the governance and oversight surrounding it,” she said.
Creecy said she had also informed the committee chairperson of the decision.
She added that, because this was the second set of allegations involving PRASA security contracts, she had instructed that a separate independent forensic investigation be conducted into all of the agency’s security contracts.
“I think this is very important because what we want to satisfy ourselves as the shareholders is that we do have bona fide contractual relationships with service providers. I am sure the board would also want that assurance because it is concerning when we receive whistleblower reports from time to time alleging breaches of the regulatory environment in the same area of the organisation.
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“I think I can speak on behalf of the board and PRASA management when I say it would not be their wish to be involved in matters that breach the regulatory environment. When there have been repeated allegations of this nature in the public domain, it is important to satisfy ourselves that there will be no future breaches,” she said.
The minister said the board would submit its findings and recommendations once the investigations were complete, and any management consequences arising from the report would be dealt with by the board.
Creecy also committed the department and PRASA to cooperating fully with police investigations and said those found responsible should face criminal prosecution.
She said the findings and recommendations would be made public once the report had undergone the necessary legal review.
