BUSINESS NEWS

Prasa name and shame corrupt companies implicated in the 2015 Derailed report

Four senior managers within the Protection Services department at Passenger Rail Agency of SA have been dismissed and implicated companies that were offered tenders irregularly were named and shamed.

The explosive 2015 report detailed procurement irregularities at the very compromised State-owned entity.

Since the appointment of Prasa Administrator Bongisizwe Mpondo in December 2019, he’s on course to clean up the mess at the loss making agency and the United National Transport Union (UNTU) have welcomed the report.

Prasa, on Monday, released a report that officials, who were employed in the Protection Services department, were dismissed after they were found guilty by a disciplinary inquiry, following allegations of impropriety in the awarding of security-related tenders.

“The irregularities in respect of the procurement of security services date back to 2009,” said Prasa.

In 2015, the Public Protector report, titled ‘Derailed’, detailed a series of improper financial conduct in the awarding of contracts under the tenure of former CEO Lucky Montana, including the irregular extension of a tender worth R256 million to Siemens and a R3.7 million contract to Sidas Security to install communications systems, without following due process.

Prasa hailed the conclusion of the disciplinary action as a culmination of a “clean-up” process which got underway after the agency was placed under administration.

Friday’s ruling ordered they should be dismissed. The fired managers were not named.

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