10 of Thuli Madonsela's findings against Prasa | Fin24
 
In partnership with
  • Cadre Cover

    The ANC is planning to launch a funeral policy scheme for members and supporters.

  • VBS Collapse

    Ramaphosa has acknowledged South Africans' impatience to see justice done.

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.

Loading...

10 of Thuli Madonsela's findings against Prasa

Aug 24 2015 16:11
Thomas Hartleb, News24

Johannesburg - Public Protector Thuli Madonsela has found widespread evidence of maladministration, improper conduct, and nepotism at the Passenger Rail Agency of South Africa.

Here is a list of 10 of the 32 complaints Madonsela investigated and which she found were substantiated. A total of 19 were substantiated. Her report, released on Monday, is entitled "Derailed".

1. Prasa improperly extended a tender awarded to Siyangena Technologies, worth R1.95bn, to install high-speed passenger gates at the Doornfontein and Nasrec train stations. The tender was extended beyond the advertised scope, in violation of Prasa's supply chain management policy.

2. Prasa improperly extended a tender worth R256m, awarded to Siemens, to install a communications system. It was extended beyond Gauteng to the whole country. This constituted maladministration and improper conduct.

3. Former Prasa CEO Lucky Montana acted in breach of the Constitution and Promotion of Administrative Justice Act in terminating the contracts of seven cleaning companies in 2012.

4. Prasa's Chris Moloi awarded a tender worth R3.7m to security company Sidas Security without a tender process being followed. Prasa's failure to act against him constituted maladministration and improper conduct. Madonsela could find no evidence that the appointment was made on Montana’s instruction.

5. Prasa improperly appointed media company KG Media to produce its Hambanathi Magazine. The contract from 2012 to 2015 was worth R16.7m. Montana acted in bad faith when he extended it for another three years, for the same amount. This was while he was aware of a finding of maladministration regarding Hambanathi.

6. Montana improperly appointed Joel Chimanda's company AR Chimanda Consulting as special adviser at a cost of R2m.

7. Montana suspended seven employees without following proper disciplinary procedures, resulting in fruitless and wasteful expenditure. Subsequent labour dispute settlements cost Prasa R3.5m.

8. Montana terminated the services of five executives between 2008 and 2013 without following proper procedures.

9. Prasa incurred fruitless and wasteful expenditure by paying rent for the Intersite Building. It vacated it 10 months before the lease expired.

10. Prasa improperly awarded a R3.8m tender to develop Johannesburg’s Park Station to ARUP, a company associated with a Prasa board member.

prasa  |  lucky montana  |  thuli madonsela  |  corruption
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
121 comments
Comments have been closed for this article.
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What's your view on deep sea mining?

Previous results · Suggest a vote

Loading...