South Africa’s biggest passenger train operator under investigation

The Passenger Rail Agency of South Africa (PRASA) is currently under investigation to determine whether it has made direct payments to organised crime figures or the entities they control.

Investigations centre on alleged criminal infiltration and irregularities surrounding the procurement of security services and subcontracting on the Cape Town Central Line.

This came to light during engagements between the operator and the Select Committee on Public Infrastructure and Minister in the Presidency.

Transport Minister Barbara Creecy told the committee’s chairperson, Rikus Badenhorst, that she had requested an independent forensic investigation into the procurement processes relating to the contract.

According to Badenhorst, PRASA first initiated an independent desktop investigation, which found no evidence to substantiate the central allegations.

Briefing the committee, PRASA acknowledged shortcomings in the independent investigation, and admitted that some data sources, including electronic devices, were seized by the South African Police Service (SAPS) as part of its investigation into the matter.

In turn, committee members highlighted a concern about video footage that captured interactions between an official and contractors that are likely relevant to the allegations.

The committee’s concern was that the footage could not be made available to the relevant investigators.

Investigators also acknowledged that the South African Police Service’s investigations remain ongoing and that governance improvements have been recommended.

Additionally, to ensure the independence and credibility of the process, a law firm and Senior Counsel were appointed to conduct the investigation and to prepare an independent report for PRASA.

This report found that, based on the records available to its investigators, PRASA found no evidence that it had made any direct payments to organised crime figures or to any entities controlled by such figures.

It added that no finding was made that PRASA had formally or unduly instructed contractors to appoint any specific subcontractor.

Regarding allegations of a coordinated capture, PRASA told the committee that no evidence of a coordinated scheme involving officials and organised criminal actors to capture project contracts could be found.

PRASA clears itself of any wrongdoing

The Group CEO of PRASA, Hishaam Emeran, explained that the investigation found no evidence that the agency had entered into any direct contractual relationship with organised crime figures or with entities they own.

He added that there was also no evidence that PRASA had made any direct payments to such figures or the entities under their control.

According to the CEO, there was no evidence of a coordinated scheme involving any rail agency officials and organised criminal actors to capture project contracts.

Additionally, no documentary evidence was found showing that the agency had formally or unduly instructed contractors to appoint any specific subcontractor.

Emeran noted that the investigation had not established the veracity of the claims made in the article that prompted it, adding that the allegations remained speculative and unsubstantiated.

PRASA initiated investigations following a media report alleging it had been infiltrated by criminality, leading to irregularities in the procurement of security services and subcontracting.

The agency commissioned investigations to test the substance of the allegations and to determine whether there was any evidence of wrongdoing; however, no evidence was found.

Badenhorst said that commuters rely on a safe, reliable and affordable passenger rail system to connect people to jobs, education, and essential services, while supporting economic growth and reducing pressure on the road network.

He added that PRASA therefore carries an immense responsibility, not only to commuters but also to the country as a whole.