JOHANNESBURG, July 4 (ANA) – The transport department on Tuesday, welcomed the High Court in Pretoria judgment which reviewed and set aside the contract for locomotives that was award to Swifambo Rail Agency (Pty) Limited by the Passenger Rail Agency of South Africa (Prasa).
“This judgment has indeed confirmed what we as the Department of Transport have been consistent about in numerous communications between my predecessor and subsequently myself as the shareholder, imploring on the Board to go deeper into the perceived corruption and leave no stone unturned when dealing with matters of maladministration and corruption at Prasa”, said Transport Minister Joe Maswanganyi.
The court ruled that Swifambo Rail Agency pay the costs of the court application including the employment of three counsel.
The department said that government, as a sole shareholder, had the responsibility to ensure that Prasa delivered on its core mandate and that such delivery is underpinned by prudent and good governance principles.
The department said that the “state of dissonance” at Prasa at the time was preceded by “systematic governance failures and maladministration”.
The Auditor-General in 2014/15 report highlighted serious governance breaches, and absence and/or weak internal controls, particularly in the supply chain management area, with findings of irregular, fruitless and wasteful expenditure. The department said that the Public Protector discovered acts of gross maladministration at Prasa in a report titled “Derailed”.
“I need to set the record straight that as part of implementing the Public Protectors remedial actions in particular, a directive by the former Minister of Transport was issued to ensure that National Treasury with the cooperation of the Board of Prasa conduct investigations into all Prasa contracts above R10 million since 2012,” said Maswanganyi.
“In dealing with this matter, we directed Prasa to develop a clear scope of work and program and that financial and fiscal prudence be exercised at all times. It could not have been that public funds are misused by corrupt officials and people with self serving interests”, emphasized Minister Maswanganyi.
Maswanganyi said that government was committed to deal decisively with fraud and corruption, and will do everything in law to root out these acts of dishonesty and criminality wherever they emerge.
– African News Agency (ANA)
