The Special Investigating Unit (SIU) is eyeing a former Passenger Rail Agency of South Africa (Prasa) boss who it believes money from companies linked to a service provider that won a contract, and former employees who drew salaries after leaving the entity.
SIU head Andy Mothibi said on Wednesday they were authorised earlier this year to probe the affairs of Prasa following recommendations by the Zondo Commission that President Cyril Ramaphosa institute an inquiry into why the entity was allowed to be in a state of ruin.
Mothibi said their investigation was focusing on issues of maladministration and governance failures at Prasa.
SIU chief national investigating officer Zodwa Xesibe said the investigation was looking into the tender awarding the supply of train locomotives to Swifambo Rail Leasing, an integrated security access system tender awarded to Siyangena Technologies, fraudulent liability claims and the employment of “ghost employees”.
Xesibe said they had noted that both the Sifwambo and Siyangena contracts had been set aside by the courts.
“The investigation will therefore focus on identifying irregularities in the process leading to the award of both tenders, the officials and board members responsible for the irregularities,” she said. According to Xesibe, Prasa paid R2.6 billion to Swifambo, which in turn paid R1.8bn to Vossloh that was subcontracted 100% to deliver the locomotives and only delivered 13.
Xesibe said: “During its engagements with Prasa, the SIU was advised that Prasa is in discussions with the liquidators of Swifambo with a view of obtaining the six locomotives which are already in South Africa as part of payment in distribution and the 17 locomotives which are in Spain that have been paid for already by Swifambo as a dividend.
“The SIU will monitor the engagements between Prasa and all other concerned parties.”
The SIU also said the analysis of financial information showed that Swifambo paid R776 million to 28 entities, including 16 directors.
“We now investigate the entities, whether they rendered services to Swifambo to be entitled to payments.”
Xesibe said apart from R246m paid to Sars, there was also R110m paid to Company “A”, of which one of the directors at the time was a former chairperson of Prasa board.
“The process of following the money is ongoing and the investigation team is approaching the entities to obtain relevant documentation.”
She added that their team also identified Company “B” which received R1.5m from Swifambo. One of the company’s directors was also a director of Sifwambo at the time.
“The SIU is in the process of engaging the company with a view to recover the funds.”
The SIU was also looking into the relationship between the former group CEO of Prasa, the director of Company “C”, which received most of the monies from Swifambo and the director of Swifambo.
Regarding Siyangena Technologies, Xesibe said it was contracted by Prasa for R5.6bn tender to supply integrated security access systems at stations and was paid R3.3bn.
According to Xesibe, the SIU investigations have found two properties were paid for in the name of a former Prasa boss by companies and a director linked to Siyangena.
“The SIU is of the view that the above transactions were simulated to disguise gratification to the former employees of Prasa.”
Meanwhile, the SIU was probing 1277 “ghost employees” that led to Prasa losing about R20m a month.
Xesibe said the SIU has conducted a verification process of Prasa employees in three provinces – Gauteng, the Eastern Cape and KwaZulu-Natal.
“We can confirm the employees identified in the three provinces as ghost employees who either resigned at the time or their contracts expired or they are in retirement,” she said.
Cape Times