The Special Investigating Unit (SIU) has linked former senior officials at the Passenger Rail Agency of South Africa (Prasa) to a failed project intended to provide trains.
This update on the Prasa investigations was presented by Andy Mothibi, head of the SIU.
Prasa awarded the tender to Swifambo Rail Leasing to supply the rail agency with 88 trains worth R3.5-billion.
In their bid documentation, Swifambo claimed they could deliver the trains at R38, 917 122 each. But Prasa ultimately paid R2.6-billion.
Vossloh, a German railway giant that was fully subcontracted to Swifambo for this project, received R1.8-billion from the total amount.
Officials received series of payments
Mothibi revealed that R776-million was sent to 28 entities. These include directors, and Sars received R246-million. However, investigations are ongoing to determine if all amounts due and payable have been received in full.
“The investigation team identified a payment of R110-million to Company ‘A’. One of its directors at the time was former chairperson of the Prasa board. The process of following the money is ongoing. And the investigation team is approaching the entities to obtain relevant documentation.
“The team also identified Company ‘B’, which received R1.5-million from Swifambo. One of Company B’s directors was also a director of Swifambo at the time of the payment. The SIU is in the process of engaging the company with a view to recover the funds,” the presentation stated.
Former Prasa head
It was also revealed that the former Prasa head was a director of a third company. It is referred to as Company ‘C’. The company received the majority of the funds from Swifambo and its directors.
The SIU is currently investigating the relationships between the companies and the directors.
Mothibi said the SIU will also follow up on engagements with the rail agency discussions. These are surrounding the liquidation of Swifambo. This after it was agreed that six of the locomotives already in South Africa would be used as payment. And the 17 in Spain are already paid for as dividends.
