The Passenger Rail Agency of South Africa (PRASA) has issued a media statement to clarify the status of the forensic investigation conducted by Webber Wentzel Attorneys into the General Overhaul (GO) Programme, and to place on record the concrete steps it has taken, and continues to take, to address any irregularities and protect the public purse:
PRASA commissioned the independent forensic investigation, initiated consequence management across every dimension recommended by the investigators and referred criminal matters to the relevant authorities. The following statement provides a comprehensive account of those actions.
The General Overhaul Programme was established to refurbish and extend the service life of PRASA’s legacy rolling stock fleet, the older Metrorail (Metro) coaches and Main Line Passenger Services (MLPS) locomotives that serve millions of commuters across South Africa’s metropolitan regions. The programme involves seven contractors appointed under a five-year contract signed in June 2022.
In April 2024, PRASA received a written complaint from a GO contractor alleging irregularities in how the programme was being administered. Rather than dismissing the complaint or handling it internally, together with project management concerns, we acted decisively: within one month of receiving the complaint, PRASA formally engaged Webber Wentzel Attorneys to conduct an independent investigation.
On 29 November 2024, Webber Wentzel presented its findings to the PRASA Group CEO. It is important that this be understood accurately: what was presented is a ‘Draft Report’, as is standard forensic practice. A draft is provided to allow PRASA to review its contents, verify factual accuracy, and enable affected parties to respond before findings are finalised.
In line with the legal principle of audi alteram partem (‘hear the other side’), Webber Wentzel, on PRASA’s behalf, issued formal letters placing the findings and allegations before the implicated contractors. The contractors have responded, and those responses are currently undergoing verification by independent experts.
The investigation, therefore, remains part of an active and ongoing legal and disciplinary process. The report is subject to legal professional privilege as attorney-client work product. Public disclosure would compromise active disciplinary and criminal proceedings. Maintaining confidentiality is a responsible legal obligation.
PRASA rejects any suggestion that it has been passive in the face of these findings and wishes to address the claim that implicated employees were permitted to exit the organisation without consequence.
Formal disciplinary proceedings, including charges of bribery, corruption, fraud, financial misconduct and policy violations, were instituted against the implicated employees before they departed from the organisation. In both cases, the employees concerned chose to resign after disciplinary processes had been formally initiated.
Additional disciplinary proceedings affecting other employees are underway. Resignation does not constitute exoneration, nor does it extinguish liability, criminal, civil or otherwise. The referral of implicated individuals’ conduct to the Directorate for Priority Crime Investigation (DPCI) and the pursuit of civil recovery proceedings are not contingent on continued employment status. These processes are active and ongoing.
In line with the Prevention of Corrupt Activities Act, formal disclosures were made to the relevant law enforcement authorities regarding the conduct of implicated individuals.
PRASA is not proceeding with the GO Programme ‘as if nothing happened’. However, PRASA is bound by law and contractual obligations in how it manages the project.
PRASA’s current position on the GO Programme is as follows:
- Payments to contractors implicated in overcharging have been frozen pending the outcome of the invoice review.
- Contractors against whom material breach has been established are being formally terminated, some are no longer part of the programme, and two are currently on 30-day notice.
- Strengthened financial management and internal control systems are being implemented for the GO Programme.
PRASA has instructed specialist legal counsel to pursue the civil recovery of funds overpaid to contractors. Independent expert analysis has confirmed significant overcharging across multiple contractors, with the full quantum of recoverable funds still being quantified as part of the ongoing civil and disciplinary processes.
The disciplinary and criminal proceedings that are a prerequisite for formal recovery action are actively progressing. PRASA will provide further updates as these proceedings reach stages at which disclosure is legally appropriate.
PRASA is an organisation that serves millions of commuters who depend on a reliable and affordable rail service.
PRASA reaffirms its commitment to transparency and will continue to cooperate fully with the DPCI, law enforcement, and all relevant oversight bodies. PRASA will provide periodic updates as the disciplinary, criminal and civil processes progress, subject to the constraints of ongoing legal proceedings.
Supplied by PRASA Communications.
