R7 billion corruption allegations at South Africa’s biggest transport company

The Passenger Rail Agency of South Africa (Prasa) has briefed the Portfolio Committee on Transport on allegations of corruption amounting to R7 billion in the General Overhaul Programme.

The committee expressed its concern over widespread reports about gangs receiving the contract to provide security services on the Central Line railway in Cape Town.

Work is being done on this line to improve passenger rail operations, alongside the many railway developments currently underway in the Western Cape.

The committee’s Chairperson, Donald Selamolela, said that the committee welcomed reports on the wrongdoing and noted that it is crucial for Prasa to be open and honest about the facts of the matter.

“The committee got a reassuring briefing that the allegations are receiving attention, and that officials are being held to account,” he said.

“We are not co-governing with thugs. Running such a prestigious entity, like PRASA, requires honesty and a drive to be of service to the people.”

Selamolela stated that Prasa is a public entity on the rise, adding that the committee wants to see its work continue in a positive direction.

“Talks of gangs being awarded contracts compromise Prasa and the service it provides to our people,” he noted.

The rail agency told the committee of two officials who resigned after they were arrested in response to allegations that they were colluding with suppliers.

While this matter has been brought before the court, eleven other Prasa officials are currently facing disciplinary hearings over various offences.

An investigation by Webber Wentzel Attorneys was also commissioned to look into the General Overhaul Programme contracts signed in 2022.

Prasa noted that it was engaging with Webber Wentzel, “rather than dismissing the complaint or handling it internally”.

Following the completion of the report, Prasa instructed specialist legal counsel to pursue the civil recovery of funds overpaid to contractors.

It is also committed to reporting to the committee once all investigations have been completed, while the committee plans to conduct oversight visits to some of the ongoing projects.

It’s not all bad

The Deputy Minister of Transport, Mkhuleko Hlengwa, has said that a great deal of Prasa’s good work goes unreported, and has urged the portfolio committee on transport to compare the entity today to where it was two years ago.

In response, Selamolela acknowledged the entity’s successes in launching new rolling stock and the revival of rail service on the Central Line and the Mabopane line in Gauteng.

He also noted that all of these lines are fully operational.

“Handle all matters of irregularities with care for the sake of the contractors, employees and our people,” Selamolela instructed.

“The committee demands aggressive marketing of what Prasa is able to do today; trains are running, and it is about the right time, as roads have turned into a killing field for our people.”

The Western Cape provincial Minister of Mobility, Isaac Sileku, recently welcomed Prasa’s reopening of the Kapteinsklip passenger rail line in Mitchells Plain, which has not been operational since 2020.

He called it a crucial step in rebuilding the province’s public transport network that will reduce pressure on the Western Cape’s congested roads.

“While all stations along the corridor are now open, our work is not done,” said Sileku.

“We are now focused on fixing signalling challenges to improve the frequency and reliability of trains.”

“For commuters, this means moving towards a service where trains arrive every few minutes, not every hour, and one you can set your watch by.”

The Western Cape Mobility Department is working closely with Prasa to accelerate recovery efforts on the Central Line, which has been impacted by vandalism and illegal occupation.