Prasa board 'vindicated' by court ruling on sketchy locomotives deal

The Passenger Rail Agency of South Africa (Prasa) board says it has been vindicated by the High Court decision to review and set aside the company’s controversial contract for new locomotives.

The Johannesburg High Court on Monday set aside a R2.6 billion tender for new locomotives which was awarded to a company called Swifambo Rail Leasing in 2013.

Swifambo, a company with no footprint in the rail industry, was awarded the contract and the Spanish-built trains were later found to be unsuitable for local railway lines.

The board has been vindicated.

William Steenkamp, Non-Executive Director at the Prasa Board

It has been a long haul for us as the board during the investigation.

William Steenkamp, Non-Executive Director at the Prasa Board

The board's William Steenkamp explains that the judgment has effectively declared the contract as unlawful and irregular.

Steenkamp says the Prasa will have to retrieve the money paid to Swifambo and return their locomotives.

According to Steenkamp, Swifambo should never have qualified to be considered as a bidder in the tender contract.

He says Prasa supports the Hawks investigation into corruption and irregular tender processes at the rail agency.

Take a listen to him explain the importance of the ruling:

Investigative reporter Pieter-Louis Myburgh says the board has been vindicated after an uphill battle and reflects on the exposé which detailed the Afro 4000 locomotives' unsuitability for local rail lines.

Meanwhile, Deputy Finance Minister Sfiso Buthelezi still maintains that his hands are clean in the tender saga during his time as chairman of the state-owned rail services company.

Take a listen to reporter Pieter-Louis Myburgh:

702 welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the 702 community a safe and welcoming space for all.

702 reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

702 is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
#GuptaLeaks: Guptas handpicked certain people for SOE boards

#GuptaLeaks: Guptas handpicked certain people for SOE boards

Times Media is in possession of a list of names that the Guptas wanted on boards of state owned entities - Prasa, Eskom and Acsa.

Government is stalling Prasa investigation -  Saftu

Government is stalling Prasa investigation - Saftu

Federation of Trade Unions Saftu says there's growing evidence of movement behind the scenes from government to shut probe down.

Old Prasa board reinstated to see through pending investigations

Old Prasa board reinstated to see through pending investigations

The High Court in Pretoria has reinstated the Prasa board headed by chairperson Popo Molefe after it was dissolved last month.

Transport Minister didn't approve Prasa CEO recommended by board - Molefe

Transport Minister didn't approve Prasa CEO recommended by board - Molefe

Axed Prasa board chairperson Popo Molefe says Minister Dipuo Peters pushed for the appointment of Collins Letsoalo as acting CEO.

Transport Minister is protecting someone by dissolving Prasa board: Popo Molefe

Transport Minister is protecting someone by dissolving Prasa board: Popo Molefe

The dismissed chairperson of Prasa opens up about the reasons that could've led to the dissolution the board.

Prasa Afro 4000 locomotives only approved on select lines, says rail regulator

Prasa Afro 4000 locomotives only approved on select lines, says rail regulator

The Railway Safety Regulator South Africa has found that the controversial Afro 4000 locomotives can only be approved on some railway lines.

'We believe we can overturn Prasa contract' - Popo Molefe

'We believe we can overturn Prasa contract' - Popo Molefe

Prasa is taking action against the supplier of the Spanish locomotives, Swifambo Rail Leasing, citing irregularities in the contract.

Prasa takes action against Swifambo in a bid to scrap R5bn deal

Prasa takes action against Swifambo in a bid to scrap R5bn deal

Following internal investigations, Prasa wants a contract with its locomotive supplier, Swifambo Rail Leasing, to be set aside.

Popular articles
Opinion:  Bishop Lekganyane is right

Opinion: Bishop Lekganyane is right

Stephen Grootes weighs in on comments made by the Zion Christian Church Bishop at the weekend.

So what exactly is radical economic transformation?

So what exactly is radical economic transformation?

Wits associate professor of economics Christopher Malikane speaks to Azania Mosaka about the term that is being bandied about.

Gospel singer Sipho Makhabane explains how Sfiso Ncwane died

Gospel singer Sipho Makhabane explains how Sfiso Ncwane died

Makhabane says Ncwane was feeling weak yesterday and his wife phoned paramedics to check on him.

Who is Advocate Tembeka Ngcukaitobi?

Who is Advocate Tembeka Ngcukaitobi?

The EFF lawyer stole the show during the state capture report court battle.

'Collect experiences, NOT possessions!' - Paul Theron (Vestact MD)

'Collect experiences, NOT possessions!' - Paul Theron (Vestact MD)

Bruce Whitfield interviews the razor-sharp tongued Vestact MD Paul Theron about his money hopes, fears, successes, failures, etc.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...

Blesserfinder: Matching you with a sugar daddy near you

Blesserfinder: Matching you with a sugar daddy near you

Is social trend Blesserfinder, where girls are allegedly matching up with rich 'benefactors' in exchange for sex, a real thing?