The United National Transport Union (UNTU) is shocked about the allegations that Transport Minister Dipuo Peters has instructed the Passenger Rail Agency of South Africa (PRASA) chairperson Popo Molefe to stop the parastatal's ongoing investigation into contracts worth billions of rands awarded during the tenure of Lucky Montana, the former CEO of PRASA.

According to News24 the news network learnt from three sources at PRASA that Peters, whom is currently on sick leave for a month, had last week written a letter to Molefe in which she instructed him to put an end to the investigation commissioned by the PRASA- board.It is alleged that Peters insisted that PRASA has not budgeted for the investigation and that is why it needed to be cancelled immediately. The investigation was commissioned more than a year ago.

“If this bizarre turn of events is true, UNTU will approached the President of the Republic of South Africa to call his Minister to order. The UNION will not allow those responsible for alleged corruptions and fraud with PRASA’s money to get away with it. This is money that could have been used to improve the working conditions of PRASA’s employees and service delivery to commuters,” says Steve Harris, General Secretary of UNTU.

Earlier this year PRASA had to file a R2.6 billion lawsuits against Swifambo Rail Leasing to try and recover the money it has paid so far for the 70 faulty new locomotives that is the wrong height and will damage existing rail infrastructure. PRASA also applied in the High Court in Johannesburg to review and set aside the initial R3.5-billion contract with Swifambo after Adv. Thuli Madonsela, Public Protector, found that the tender was improper. The matter has not yet been heard.

The Public Protector also made nine other crucial findings against the railway operator. According to Adv. Madonsela there is widespread evidence of maladministration, improper conduct, and nepotism at PRASA. In her report entitled "Derailed", she also found that PRASA extended another improper tender of R256million to Siemens to install a communications system, Mr. Lucky Montana, former CEO, acted in breach of the Constitution and Promotion of Administrative Justice Act in terminating the contracts of seven cleaning companies in 2012, Mr.

Chris Moloi of PRASA awarded a tender worth R3.7m to security company Sidas Security without a tender process being followed, Prasa improperly appointed media company KG Media to produce its Hambanathi Magazine, Montana improperly appointed Joel Chimanda's company AR Chimanda Consulting as special adviser at a cost of R2 million, Montana suspended seven employees without following proper disciplinary procedures, Montana terminated the services of five executives between 2008 and 2013 without following proper procedures, PRASA incurred fruitless and wasteful expenditure by paying rent for the Intersite Building and PRASA improperly awarded a R3.8m tender to develop Johannesburg’s Park Station to ARUP, a company associated with a PRASA board member.

Two weeks ago Brig. Hangwani Mulaudzi, spokeperson for the Hawks, confirmed to UNTU that an investigation by the South African Police Service into allegations of tender fraud and corruption at PRASA is underway. and will most likely not be finalized within the next year.  “We are not in a position to reveal the contents thereof. I can confirm that it is a very time consuming investigation. There are various tender contracts involved which will require forensic audits and analysis,” Mulaudzi said.

Issued by UNTU