SIU finds ex-Prasa board chair implicated in R3.5bn train fraud

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.

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13 COMMENTS

  1. I very much doubt whether anything will come of this so-called ‘on-going investigations’….THESE THIEVES HAVE anc GOV. CONNECTIONS AND ALL OF THEM BENEFITTED FROM THE LOOTING…..South Africa, don’t hold your breathes…..

  2. A real reporter would publish the names of all the companies and the entire list of board members in each company. Then get comments from board members to disclose their involvement with these corrupt dealings and they political affiliation. But as is tradition, even reporters protect their ANC cadre. So self report on your own involvement with the terrorist communist ANC EFF MK

  3. Work in progress,it will lead to the head of the organization on that time,all prasa seniors were having two or more houses and farms,and they’re busy protecting one another and discrediting the NPA for their good work,whether whoever has benefited,the fact remains the allegations are proving the call for investigations and with evidence link,they got arrested,that’s a very good job,political influence,forget,it’s a process when someone is dishonest and clever.

  4. Under whose watch did all the rot happen? Did ĥe know, I remember him saying they say I’m a thief, Ngiyabazi, abantshontshi we Mhaaà!!!!!. He recollected them most of them are members of parliament. We shouldn’t allow them to have their hands anywhere near the cookie jars.

    Gullible south Africans are routing for these thieves and vilify those who stand against corruption. The fight against corruption must intensify and won for the sake of the future generations. Ethics and morality are values that we have to embrace as a society.

    We should never allow empty rhetoric by those masquerading as extreme left in their ideology to deceive us. These are nothing but thieves disguised as comrades with the sole purpose of looting and self agrandisement.

    South African need jobs, security, homes,etc, something that can come from ethical and moral leaders with a conscience and patriotism. This is for all levels of leadership and categories of employment in government and private sector to be conscious of and embrace. Let each one of us fix ourselves society can change if we change as individuals, as we are a microcosm of our communities and society.

    • We have to speak out and hold them accountable, granted it’s not going to be an overnight success, but the more we the people ,the governed and the electorate keep quiet the more the root ,the malfeasance, the brazenly looting will continue unabated, let’s keep the faith that things will come right .

  5. Guys watch us and the world. Governments are being forced to change whether they like it or not.
    Let them carry on as the road has run out, the Governments have reached the cul de sac.
    They will be turning around in the dead end and cleaning up the mess or pay the price, all eyes are open now.
    The beauty is our children are wiser to the rot parents tried to lie and instil.
    Babies put together look at differences but dont judge and the future will wash away all the disgraceful acts of the past because they wont live in the past.
    All who held back and hold back people need to make up for the wrong as the clock cannot turn back. And we have no choice but to move forward on the main road.
    So all the rot choose a side road you want to take.
    There holds no human decency, honour respect and truth…keep walking to your dead end…… you will not be returning to our main road!

  6. Been expecting this outcome. Straight from RDP house to a quickly built up mansion. Deployees from trade unions’ heads and sub heads. Incompetent to the core driven by greed, arrogance n ignorance…..hope the SIU deals with all of them

  7. They have all found a new home of criminals in the MK party. No shame whatsoever!!! From VBS, SARS, PRASA, VREDE, ESKOM, TRANSNET, RAPISTS, GUPTAS etc. They still want to tell us that they fought for freedom of the people that they now steal from. WHAT A DISGRACE!!!!!!!!

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