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Adv. Madonsela found in her report “Derailed” that Prasa (Passenger Rail Agency of South Africa) tender contracts had been improperly awarded and extended to the tune of R355 million. The entity also improperly incurred an over expenditure of R523 792 767. These findings are indeed so serious that it cannot be left to Prasa to internally investigate it alone – especially when a Chapter Nine institution had set out otherwise.

The rail deal gets more and more suspicious day by day. Last month I requested the then Public Protector, Adv. Thuli Madonsela, to instruct Werkmans Attorneys (which is undertaking an investigation on behalf of Prasa) to specifically include a R16 million Gibela deal involving SAA Chairperson Dudu Myeni’s son, Thalente, in its terms of reference. This deal fell within the remit of these terms of reference prescribed by the Public Protector and should thus be included in the ongoing investigation.

It was revealed that Myeni’s son and other politically-connected stakeholders in Prasa's R51 billion contract for new passenger carriages had cashed in on their shares in this dubious tender, before a single new train has been built. According to reports, JSE-listed tech giant EOH earlier this year paid R16.5m for 100% of the shares in New Africa Rail (NAR), French manufacturing giant Alstom's BEE partner in the contract.

Due to the political connections of those involved, the deal exceeding R10 million and also falling within the Derailed probe timeframe, I wrote to the Public Protector to request her to extend her investigation into the Gibela deal.

Besides this, I filed an affidavit also last month with the SAPS relating to allegations that the ANC, as well as Prasa officials were the beneficiaries of a bribe in order for Swifambo Rail Leasing to secure the controversial Afro4000 Locomotive tender, which have been involved in two derailments as a result of their dimensions being too large for South Africa’s railways.

This affidavit concerns possible criminal offences committed by various persons in terms of the Prevention and Combating of Corrupt Activities Act, specifically the allegation that one Auswell Mashaba, at the time a director of Swifambo, paid a portion of the money that Swifambo received in terms of its contract with PRASA to another company, AM Consulting Engineers where Mashaba was also a director. AM Consulting then transferred these funds to a company known as Similex (Pty) where President Zuma’s alleged crony, Maria Gomes a director of Similex, would then distribute the money to accounts of the African National Congress.

The use of state procurement in order to benefit the ANC, a political party is illegal and thus is subject to investigation as stipulated by the Prevention and Combatting of Corrupt Activities Act of 2004.

It simply cannot be that state machinery is used to progress a political agenda. Even worse is Minister of Transport, Dipuo Peters’ instruction to discontinue an independent investigation into tender irregularities at Prasa, which was required as remedial action by the Public Protector. In the context of these latest developments, this conduct is even more telling.

Corruption steals opportunities, creates unfairness, damages our economy, and hinders service delivery. The DA will not rest until this matter is fully investigated and action taken against all those found guilty.

Issued by DA