String of improper actions by SA's rail company‚ Madonsela finds

24 August 2015 - 17:24 By Sipho Masombuka

The Public Protector has laid bare the maladministration‚ tender irregularities and financial mismanagement rot that ensued at the embattled Public Rail Agency of SA (Prasa) under the leadership of former head Lucky Montana. Public Protector Thuli Madonsela found that Prasa improperly incurred an over expenditure amounting to more than R523.7 million and that Montana improperly terminated contracts of executives resulting in fruitless and wasteful expenditure amounting to R5-million.Madonsela also found that Montana awarded a R1.9 million contract to AR Chimanda Consulting on a monthly retainer of R150‚000 without a competitive bidding process.She also slammed Montana for summarily terminating contracts with seven cleaning companies‚ improperly replacing them with Reakgona Commercial and Industry Hygiene and Katanga Cleaning Services.In her damning report titled “Derailed” released in Pretoria on Monday‚ Madonsela found that Prasa improperly:• extended the scope of a tender awarded to Siyangena Technologies to the tune of R1.95 billion• extended the scope and value of a tender awarded to Siemens for Dark Fibre and Integrated Communication System beyond what was advertised and approved at a total cost of R256 million• appointed and extended the contract of Vimtsire Security Services to the tune of R26.5 million • made an advance payment of R600‚000 to Enlightened Security before signing the actual contract and issuing a notice to proceed• appointed a media company‚ KG Media‚ on a three-year contract to its Hambanathi Magazine at the cost of R16‚7million.• appointed Ndwandwe Consultancy at a cost of R10.8 million for the value creation and culture change process.• increased the scope and price of a marketing and communications tender to Brand Leadership from an initial price of R12-million to a whopping R29‚5-million• awarded Edwin Lekota's Lekga Investment Holdings a R10 million contract for the development of a contingency emergency preparedness programme for Metrorail without competitive process. • awarded a R10.6 million contract to security company Futuris Guarding.Among others‚ Madonsela has recommended that the chairperson of the Prasa board‚ Popo Molefe‚ who was present during the release of the report‚ get National Treasury to conduct a forensic investigation into all contracts awarded since 2012 which were above the value of R10.6 million.She also recommended that Molefe take measures to address findings regarding systemic administrative deficiencies allowing ongoing maladministration and related improprieties in the procurement system.“The Prasa Board (must report) to the National Treasury and the Auditor-General‚ particulars of the alleged financial misconduct and the steps taken in connection with such financial misconduct as contemplated in section 85 of the (Public Finance Management Act)‚” she said...

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