Off the rails: Thuli’s shock Prasa report
Joyrides on Blue Train and dodgy tenders exposed in explosive probe of state company
THE wheels of the Passenger Rail Agency of South Africa’s gravy train are set to come off when public protector Thuli Madonsela releases the results of her three-year probe into the troubled parastatal this week.
Sunday Times reporters have seen Madonsela’s damning provisional report, “Missing Tracks”, which suggests axed Prasa boss Lucky Montana milked the parastatal’s coffers by catching joyrides on the Blue Train with female companions, signing off on dodgy tenders worth billions without following the agency’s supply chain management policies, paying rent for vacant buildings, and blowing nearly R4-million by paying off executives who were fired improperly.
The provisional report, dated March 2015, finds that:
A R1.1-billion contract to provide stations with high-speed access gates was awarded improperly to Siyangena Technologies after tender procedures were not followed;
A R40-million contract awarded to Siemens for installing communications systems in Gauteng was improperly extended to KwaZuluNatal and the Western Cape for another R59-million, which broke Treasury rules because it was not advertised;
A contract to supervise Prasa’s R7-billion signalling system upgrade was awarded improperly to Siyaya DB after a bid committee recommendation to appoint another company was ignored without good reason;
Prasa paid rent for offices in Braamfontein, Johannesburg, for 20 months after it had moved out; and
Prasa blew R3.8-million on firing three executives improperly.
The provisional report found all these incidents amounted to improper conduct, wasteful expenditure or maladministration.
The report also found evidence that Montana had travelled on the Blue Train on September 24 2009 with four women who returned on an SAA flight three days later. But without access to detailed information, the report could not make a finding that this constituted irregular or fruitless expenditure, as alleged.
Montana, though, has come out guns blazing, both against Madonsela’s investigation and the Prasa board that ousted him.
In his submission to Minister in the Presidency Jeff Radebe, who was appointed as mediator between Montana and the board, he accused Transport Minister Dipuo Peters and board chairman Popo Molefe of orchestrating a “coup d’état” and issuing “battle orders” against him.
In accepting his departure, the board had imposed conditions that amounted to “them effectively running Prasa”.
These included banning the CEO from appointing executives or approving major tenders. This was “clearly aimed at allowing board members to allocate tenders and take over the day-to-day operations of Prasa”.
In his 11-page submission, sent to Radebe on July 27 and seen by
After Montana was fired, these employees came forward to make submissions
Sunday Times reporters, Montana claims Molefe was being “disingenuous and misleading the country” in his media statements.
Montana said the board regularly interfered in operational matters. Molefe had become “the shop steward of executives” being disciplined for misconduct.
His trouble started when he questioned why Molefe had pushed to reinstate an executive suspended for “irregularly” awarding a R58-million tender to South African Fence and Gate, a company that is said to have contributed to the chairman’s golf day held at Sun City in April.
He said Molefe was “playing with fire” when he alleged Montana was fired for approving an irregular contract worth R2.4-billion to revamp the Braamfontein depot.
He claimed the revamp was critical to the success of Prasa’s R173billion modernisation programme, which Molefe was putting at risk.
Molefe’s “unlawful and irresponsible” attempts at cancelling the contract awarded to a consortium of
companies listed on the JSE would likely result in legal action “and Prasa may be forced to pay over R2.4-billion to this winning bidder”.
Montana also slammed Molefe for peddling “the lie” that he quit because Madonsela had found him guilty of “massive corruption”.
“Prasa has presented volumes of evidence to demonstrate that the allegations were not only false and baseless but also defamatory,” he said. “We expect nothing less but for the public protector to dismiss most if not all the allegations.”
It has also emerged that Montana wrote a letter to Molefe last month demanding that he reimburse Prasa for several trips his wife took to Cape Town “other than the travel for the Cape Town International Jazz Festival” at the rail agency’s expense.
Breaking his silence in an exclusive interview with the Sunday Times on Friday night, Molefe said all the allegations against him, including that South African Fence and Gate chipped in for his golf day after being irregularly awarded a R58-million tender by Prasa, were “rubbish.”
“There is no money in my foundation bank account that came from that company, that is rubbish and untrue. The person making those allegations knows very well that he is lying.”
Molefe also denied his wife, Johanna Molefe, had travelled to Cape Town for the jazz festival at Prasa’s expense.
“It is true that my wife accompanied me to Cape Town using a Prasa account but I was invoiced for the trips. It was more than one trip, and I paid back the money.
“I was a premier for 10 years and never stole a cent from the public, I can’t start now. These people are trying to tarnish my track record and drag my good name through the mud.
“If ever anybody has any evidence that I did anything illegal or untoward, I challenge them to report the matter to the nearest police station.”
He claims the Popo Molefe Foundation, into whose bank account alleged “bribes” were said to have been paid, has a balance of less than R1-million.
“I have never benefited a cent from this foundation, [nor has] any member of my family. I have never allowed anybody or company to induce me to do anything illegal.”
Molefe said the release of Madonsela’s report was delayed after investigators found out that Montana had withheld the subpoenas of about 13 employees who had been expected to make submissions to the public protector.
“It was only after Montana was fired that some of these employees came forward to say they are willing to make their submissions to the office of the public protector. We are all waiting to see . . . the findings and recommendations of the public protector’s investigation.”