Prasa racks up R14 billion in irregular, fruitless and wasteful expenditure

Prasa (Passenger Rail Agency of South Africa) officials appeared in Parliament on Wednesday to account for R 14 billion in irregular, fruitless and wasteful expenditure.

Appearing before the standing committee of public accounts (SCOPA), acting Prasa group CEO Collins Letsoalo, revealed that 142 cases were being investigated to determine what went wrong at the state-owned enterprise.

He revealed that R3.6 billion of the amount was for the locomotives tender approved by former CEO, Lucky Montana. The locomotives were later reported to have not been configured to operate on the country's railways.

There was a general collapse in controls at Prasa. There has been incidents where people didn't adhere to laws and policies.

Collins Letsoalo, acting Prasa CEO

Speaking to 702's Stephen Grootes, Auditor-General Kimi Makwetu said he wouldn't label the state of affairs at the SOE as looting but it was clear that there were "elements of criminality".

He said that Montana must be held accountable for any financial misconduct that occurred under his watch.

Of the 142 cases we are currently investigating to the tune of R24 billion, we could find four where there is elements of criminality and have referred them to the Hawks.

Collins Letsoalo, acting Prasa CEO

Listen to the interview below:

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