Johannesburg - The CEO of the Passenger Rail Agency of SA's
property management company has been placed on special leave following a probe
into alleged tender fraud and irregularities, Prasa said on Thursday.
"The forensic investigations were launched after
preliminary investigations revealed widespread fraud by officials in collusion
with private companies," Prasa said.
"The nature and level of tender fraud has rendered an
otherwise viable property division within Prasa unprofitable.
"Our commitment is to root out, not only corruption
among our own officials, but even those companies involved in the defrauding of
taxpayer monies," said Prasa group CEO Lucky Montana.
Montana would act as CEO of Prasa Corporate Real Estate
Prasa said eight private companies had been implicated in
the alleged irregularities, and three officials had already been suspended
pending full forensic investigations.
It also took up Finance Minister Pravin Gordhan's call to
blacklist companies involved in corruption, to recoup taxpayers' money from
these companies and fire officials found guilty.
Prasa said it would ask companies to write a letter
explaining why they should not be blacklisted from doing business with
government, why they should not pay back money illegally received, and why
Prasa should not institute criminal action against those proved to have