“Guptas put Prasa under pressure”
Montana gets praise for his ‘frank honesty’ to parliament
Former Passenger Rail Agency of SA (Prasa) group chief executive Lucky Montana gave an explosive account of the machinations of state capture when he appeared yesterday before parliament’s inquiry into stateowned enterprises.
Montana gave a 65-page presentation to members of parliament where he disputed claims by deputy minister of public enterprises and former minister of transport Ben Martins in which he inferred that Montana was responsible for alleged irregularities in its major contracts for locomotive and rolling stock.
Montana said it was, in fact, Martins who introduced him to the controversial Gupta family and to President Jacob Zuma’s son Duduzane and that he fought against pressure to give them free rein on Prasa contracts.
Montana left Prasa on a low, over reports of procurement irregularities, including claims that the parastatal procured trains whose height was above specification for use in SA. He said Martins’s remarks were “false, unfair and disappointing”.
“It would appear that in trying to distance himself from the Guptas, comrade Ben Martins mentioned me and said I introduced the Guptas to him and to Prasa. He was trying to distance himself from the Guptas at my expense,” said Montana.
He told MPs that his first encounter with Duduzane and the Guptas in 2012 occurred because Martins had asked Montana to visit him. In September of 2012, while he was still Prasa CEO, Duduzane and Tony Gupta propositioned him to award contracts to them, hinting at kickbacks.
He said that meeting took place before he travelled to Germany on Prasa business.
He said that while he was in Germany, he received calls from colleagues notifying him that bidders for the locomotive tender complained of being approached to pay bribes for the contract.
Montana said he was put on notice by Gupta associates that cabinet wanted to dispose of the Prasa board and appoint new board members.
He said he resisted this until his last day at Prasa.
He said there was pressure to pick China South Rail, represented by the Guptas, to supply 600 passenger trains but that it did not meet the specifications.
“A chap who was with them met with me in Rosebank and told me there was a political view that Prasa’s board be changed and its AGM postponed. I differed with that because changing the Prasa board in the middle of a big tender is asking for trouble,” he said.
He credited Martins, saying that he angered the Guptas when he did not act swiftly enough to have the board removed. It was only when Martins was replaced by Dipuo Peters that moves were made to adjust the leadership of Prasa, he said.
He said Salima Essa and Iqbal Sharma were both picked to rise to the board of Prasa and that the Guptas wanted Mzwanele Manyi to serve as Prasa chair. He expressed his misgivings to Deputy Finance Minister Sfiso Buthelezi, who was Prasa board chair at the time.
When inquiry evidence leader Advocate Ntuthuzelo Vanara asked him about why Prasa sponsored business breakfasts by The New Age newspaper, Montana said the deal was envisioned to give Prasa an advertising platform which, in reality, never materialised.
He dismissed reports of procuring trains that were too tall for tunnels as a smear campaign by those seeking business with Prasa through sinister means. He denied having lawyer Riaan van der Walt buy him a house, saying he actually sold a property to him.
ACDP MP Steve Swart called the submission “explosive” and lauded Montana for his “frank honesty”.