THE auditor-general has uncovered more rot at the Passenger Rail Agency of SA (Prasa) with abuse of credit cards and the awarding of suspect construction contracts.It has also emerged that former CEO Lucky Montana, who left under a cloud, earned R4.39m in 2015-16, R3.9m of which was a basic salary, while Prasa executive directors took home a combined R11.4m in the same period.The financial statements in Prasa’s 2015-16 annual report show that it incurred R4.1bn in irregular expenditure, which includes pre-payments of R1.9bn for new locomotives."Construction contracts were awarded to contractors that did not qualify for the contract in accordance with Construction Industry Development Board regulations," Auditor-General Kimi Makwetu wrote.Effective steps were not taken to prevent irregular, fruitless and wasteful expenditure, Makwetu said."Credit cards, not used for permitted purposes as set out in Treasury regulations, were obtained in contravention of Treasury regulation 31.2.5 [no...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.