DA to use PAIA to find out more about Prasa’s dealings with VBS Mutual Bank
The party says it will submit an application to Prasa in terms of the Promotion of Access to Information Act to request documents showing proof of the bank’s compliance with the Treasury
The DA says it will submit an application to the Passenger Rail Agency of SA (Prasa) in terms of the Promotion of Access to Information Act (PAIA) to request the rail agency to fully disclose documents showing concrete proof of VBS Mutual Bank’s compliance with the National Treasury.This follows media reports that the cash-strapped Prasa is allegedly investing R1bn with VBS Mutual Bank‚ the bank that lent President Jacob Zuma R7.8m to pay back money in the Nkandla scandal‚ the DA said on Sunday."In terms of section 7 of Public Financial Management Act (PFMA)‚ Prasa is bound to act within the ‘prescribed framework’ for their banking‚ cash management and investments. S7(2)(b) requires that a public entity may only open a bank account with (a) Treasury approval and (b) after prescribed tender processes have been complied with" said DA shadow transport minister Manny de Freitas."Further‚ even if Prasa were granted approval by the National Treasury‚ VBS submitted an unsolicited bid and t...
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.