Mbalula tasks PRASA with recovering R2bn

By Doug Mattushek - 25 July 2019Views : 206


The board of the Passenger Rail Agency of South Africa has been tasked by Transport Minister Fikile Mbalula to recover the R2 billion it lost when purchasing trains for Shosholoza Meyl.

An investigation found that millions was lost to corruption, leading to the liquidation of the main contractor, Swifambo.

"This marks the end of a painful episode for Prasa, where a significant investment aimed at improving the Shosholoza Meyl service was to line their own pockets," Mbalula told parliament on Wednesday.

"Corruption and criminality will not go unpunished. In this regard, I expect the board of Prasa to urgently litigate to recover public funds from those it was paid to."

Mbalula also took the opportunity to introduce former Department of Sports and Recreation director-general Alec Moemi as the new head of the transport department. One of Moemi’s first tasks is to draw up a policy on safety and security.

"I have no doubt that Mr Moemi brings to the department experience, energy and drive that is necessary to a new service delivery model that places the people at the centre," added Mbalula.

"This policy must be produced as a matter of urgency. This exercise must lead to direct in-sourcing or at least 80% of security personnel by Prasa.

"These security officers must receive their basic training from SAPS and I have discussed this with Minister [of Police Bheki] Cele."