THE auditor-general, Kimi Makwetu, has taken the Passenger Rail Agency of South Africa (Prasa) to task for irregular spending and awarding contracts to bidders based on preference points inconsistent with the requirements of the Preferential Procurement Policy Framework Act. Prasa’s financial 2015-16 statements include R4.1bn in irregular expenditure, prepayments for new locomotive of R1.9bn and new rolling stock for the agency’s fleet renewal programme worth R8bn. Prasa is the subject of 39 Hawks investigations in terms of the Prevention and Combating of Corrupt Activities Act. The agency has commissioned law firm Werkmans Attorneys to probe financial mismanagement and tender irregularities under former group CEO Lucky Montana. This comes amid revelations that Montana earned R4.39m in 2015-16 of which R3.9m was basic salary. Executive directors took home altogether R11.4m in that period. The auditor-general drew attention to significant gaps in Prasa’s annual report, saying it had ...

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