Prasa circumvented its chief financial officer
Acting Prasa CEO exposes the scale of the rot under former CEO Lucky Montana
THE Passenger Rail Agency of SA (Prasa) bled R13.9bn because of irregular contracts under former CEO Lucky Montana’s tenure during which the agency’s chief financial officer was bypassed. Prasa will have to tighten its supply-chain management because the state-owned entity has to start procurement for its R220bn modernisation programme. A total R4bn of the irregular expenditure is linked to Swifambo, which landed a controversial contract to supply the rail agency with 70 locomotives but is the subject of a high court case. Prasa wants the deal scrapped as it has come to symbolise the widespread rot at the rail agency, which suffered a series of embarrassments in 2015 after it came to light that the Spanish-made locomotives were too tall and unsuitable for SA’s rail infrastructure. Prasa’s acting CEO Collins Letsoalo, who was appointed in July and seconded by Transport Minister Dipuo Peters, said that during Montana’s term supply-chain management reported to the CEO instead of the ch...
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