Prasa ‘holy cows’ linked to former CEO

A witness testifying at the Commission of Inquiry into State Capture yesterday told chairperson Deputy Chief Justice Raymond Zondo there were a number of individuals who had undue influence at the Passenger Rail Agency of South Africa (Prasa), which was a concern.

Fani Dingiswayo, a Prasa official at its legal department who is currently on suspension, said during former Prasa chief executive Lucky Montana’s tenure there were “holy cows” – service providers who were treated favourably – and some continued to have influence at the agency.

Dingiswayo said these individuals included businessmen Roy Moodley and Makhensa Mabunda. Moodley is said to be linked to former president Jacob Zuma.

He said it was once “whispered” in his ear that he should not scrutinise a contract Prasa had with Siyaya, an entity linked to Mabunda.

He said everything that related to these service providers, from procurement to contracting, was treated favourably.

Dingiswayo noted that the public protector’s report titled Derailed also pointed out that at the time normal practice was flouted, with contracts not vetted by the legal department at Prasa.

He said that even during meetings, these service providers would give Prasa officials “looks” suggesting if they, the officials, did not toe the line, they would be reported.

Dingiswayo said this meant officials at Prasa could not do their work properly.

He told the commission that Montana and Mabunda had worked together at the department of public enterprises and that when Montana moved to the department of transport, Mabunda then went into business and won a contract there.

Montana’s move to Prasa saw Mabunda also secure contracts at the agency, “and this is very key work”, Dingiswayo said.

Dingiswayo said Prasa’ entire technical division was outsourced to Mabunda.

He said the contract he had been cautioned not to scrutinise was “strange” because Mabunda’s entity was paid 20c for every litre of petroleum products Prasa used when a more favourable price could have been an option.

“That’s when somebody said don’t look too closely,” Dingiswayo said.

It was once whispered in my ear that I should not scrutinise a contract Prasa had with Siyaya.

Fani Dingiswayo Suspended Prasa legal official