Prasa racks up R14 billion in irregular, fruitless and wasteful expenditure

Prasa (Passenger Rail Agency of South Africa) officials appeared in Parliament on Wednesday to account for R 14 billion in irregular, fruitless and wasteful expenditure.

Appearing before the standing committee of public accounts (SCOPA), acting Prasa group CEO Collins Letsoalo, revealed that 142 cases were being investigated to determine what went wrong at the state-owned enterprise.

He revealed that R3.6 billion of the amount was for the locomotives tender approved by former CEO, Lucky Montana. The locomotives were later reported to have not been configured to operate on the country's railways.

There was a general collapse in controls at Prasa. There has been incidents where people didn't adhere to laws and policies.

Collins Letsoalo, acting Prasa CEO

Speaking to 702's Stephen Grootes, Auditor-General Kimi Makwetu said he wouldn't label the state of affairs at the SOE as looting but it was clear that there were "elements of criminality".

He said that Montana must be held accountable for any financial misconduct that occurred under his watch.

Of the 142 cases we are currently investigating to the tune of R24 billion, we could find four where there is elements of criminality and have referred them to the Hawks.

Collins Letsoalo, acting Prasa CEO

Listen to the interview below:


This article first appeared on 702 : Prasa racks up R14 billion in irregular, fruitless and wasteful expenditure


Recommended

by NEWSROOM AI
Read More
Hawks investigating 4 cases related to irregular Prasa expenditure - Themba Godi

Hawks investigating 4 cases related to irregular Prasa expenditure - Themba Godi

Prasa has referred more than 60 inquiries to police related to R13.9 billion irregular expenditure highlighted by the AG's report.

Parliament grill Prasa over R13.9bn irregular expenditure

Parliament grill Prasa over R13.9bn irregular expenditure

Prasa appears before Scopa to account for irregular expenditure and insists investigations into possible wrong doing are underway.

Auditor General speaks out about irregular government expenditure

Auditor General speaks out about irregular government expenditure

The AG released the report, revealing an increase of 80% in irregular expenditure mainly due to supply chain management factors.

Prasa's Popo Molefe paid back the money

Prasa's Popo Molefe paid back the money

Chairperson of the Prasa Board explains why he paid back the money following an order by Minister of Transport.

Myeni's son linked to Prasa's R51bn tender deal - reports

Myeni's son linked to Prasa's R51bn tender deal - reports

It's reported that Thalente Myeni apparently cashed in on shares in the tender, despite having no experience in the rail industry.

SAA, Eskom, Prasa, Denel and the Reserve Bank… What’s the story?

SAA, Eskom, Prasa, Denel and the Reserve Bank… What’s the story?

Financial Mail Deputy Editor Sikonathi Mantshantsha discusses why these institutions are making headlines.

Prasa's Popo Molefe says R80 million went to ANC from Prasa train contract

Prasa's Popo Molefe says R80 million went to ANC from Prasa train contract

Pieter-Louis Myburgh, News24 investigative journalist says Popo Mplefe seems determined to sort out this mess, but ANC deny claims

Lucky Montana says Public Protector report 'has massive factual inaccuracies'

Lucky Montana says Public Protector report 'has massive factual inaccuracies'

Former Prasa CEO Lucky Montana says he will take the Public Protector to court over her report 'Derailed'.

Molefe responds to Madonsela's Prasa report

Molefe responds to Madonsela's Prasa report

Passenger Rail Agency of SA chairperson Popo Molefe says the board was shocked by Public Protector Thuli Madonsela's damning findings as they only found out about the investigation in March this year.

Popular articles
Dr Eve busts myths about the female orgasm that could change your sex life

Dr Eve busts myths about the female orgasm that could change your sex life

As many as 1 in 3 women have trouble reaching orgasm when having sexual play, clinical sexologist Dr Eve explains.

The Man of the Mountain: Why I'm climbing Table Mountain every day for a year

The Man of the Mountain: Why I'm climbing Table Mountain every day for a year

After being retrenched last year Andrew Patterson decided he wanted to do something more fulfilling with his time.

If you go down to the Spar today...join SA's biggest pajama party!

If you go down to the Spar today...join SA's biggest pajama party!

Spar customers are being encouraged to head out for the weekly shop in their PJs today and you get a free coffee in return!

'Impossible to think violent protests in CPT are anything other than political'

'Impossible to think violent protests in CPT are anything other than political'

Just this week WC Human Settlements MEC Bonginkosi Madikizela said he believed the protests were being 'orchestrated'.

How much you need to retire ‘comfortably’ (and the best ‘investment’ ever)

How much you need to retire ‘comfortably’ (and the best ‘investment’ ever)

For your assets to generate an income that lasts as long as you do; here’s what you’ll need to amass (and tips for getting there)…

'Sexting is a great way to keep spice in long distance relationships'

'Sexting is a great way to keep spice in long distance relationships'

With the help of technology and a good imagination, sex in a long distance relationship doesn't have to be out of reach.