Prasa getting back on track, says Blade
GOVERNANCE remains a big challenge for most of his department’s entities, says Transport Minister Blade Nzimande.
Delivering his department’s budget speech in parliament at the weekend, Nzimande said the government had intensified its efforts to stabilise its entities, particularly the Passenger Rail Agency of SA (Prasa).
“We will continue to intervene decisively to restore good governance.
“I have met boards and management of entities, articulating to them my expectations of the kind of professional conduct expected.
“Board members must be diligent, professional, understand their fiduciary roles, not interfere with day-today running of entities, and must fight corruption and state capture,” said Nzimande.
The department was in the final stages of appointing boards for the Airports Company of SA, the South African National Roads Agency (Sanral) and other entities whose terms had expired and where there were vacancies. Nzimande said his department was dealing with Prasa’s capacity challenges and had appointed a new board that would lead its turnaround.
Prasa, which delivers passenger rail services, has been inundated with charges of corruption and mismanagement. The agency paid more than R630-million to controversial Siyaya Rail Solutions from 2014-2017.
Siyaya, a goods and rail services provider, has received more than R5billion in deals from Prasa over a number of years, with some of the deals being flagged as corrupt. This is as the country’s rail services flounder, with Cape Town the worst-hit.
“Among the areas we have given our urgent attention are challenges facing Prasa in the Western Cape, Cape Town in particular,” Nzimande said.
“Our priority is to provide safe rail travel, especially for the working class. I will convene stakeholder meetings in the coming months, which will include Prasa, the City of Cape Town, trade unions and shop stewards, municipal councillors and political formations.”
The department’s expenditure is expected to increase at an average of 6.3% a year over the medium-term, from R57.9-billion in 2017-18 to R69.6billion in 2020-21.
DA MP and transport spokesman Manny de Freitas said that “just like previous years, Prasa continues to deliver corruption while millions of South Africans are left to suffer daily by using outdated” and unmaintained trains.
“Minister, you need to help stop the tug-of-war between Prasa and its bullying big brother, Transnet,” said De Freitas.