Prasa deal appeal flops

Swifambo Rail Leasing’s appeal against a high court decision to review and set aside Prasa’s Afro 4000 locomotive contract failed yesterday.

The Supreme Court of Appeal (SCA) dismissed the appeal against the High Court in Johannesburg’s ruling last year that set aside the award of a R3.5 billion contract to acquire the controversial Afro 4000 diesel locomotives.

The Passenger Rail Agency of SA (Prasa) said the decision of the SCA vindicated the decision of its erstwhile board to apply for the review and setting aside of the award. This decision was supported by the current board.

The SCA had said that apart from the fact that no purpose would be served in continuing with the contract, it would be harmful to allow a contract concluded in a corrupt process to stand.

In 2015, then public protector Thuli Madonsela released a report on an investigation into allegations of maladministration relating to financial mismanagement and tender irregularities at Prasa involving the Afro 4000 contract. It emerged that the diesel locomotives were higher than existing overhead power lines.

Only 13 of the 70 Afro 4000 diesel locomotives have so far been delivered to Prasa by Vossloh Espana, a Valencia-based rail company, with Swifambo as its black economic empowerment partner.

Prasa chairperson Khanyisile Kweyama said the agency would learn the lesson of how not to do contracts from this verdict.

“This decision firstly establishes rules on how not to do black economic empowerment. Secondly, it brings closure on a contract that has seriously hampered our ability to plan long-distance train services,” he said.

Prasa CEO Sibusiso Sithole said: “Prasa is working to bring back reliability to the long-distance and commuter service in the Eastern Cape. These services have been adversely affected by the unavailability of locomotives.” – ANA