‘Why is Peters urging closure of Prasa probe?’

24 August 2016 - 13:18 By TMG Digital
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Transport Minister Dipuo Peters has apparently described as “irregular expenditure” the R80-million paid to a law firm to probe irregularities and wasteful expenditure at the Passenger Rail Agency of SA (Prasa).

The Democratic Alliance (DA) said on Wednesday that it “is in possession of a confidential letter exposing…Peters’ gross abuse of power by flagrantly attempting to thwart and ultimately terminate an independent investigation being conducted by Werksmans (Attorneys) into irregular tenders at the embattled rail agency”.

The party’s Manny de Freitas quoted Peters’ letter as saying: “I…ask that you close off this investigation process and consider the results thereof.

“Furthermore‚ the board is requested to submit a detail[ed] report indicating the progress and the outcome of the investigation. A determination of any further investigation and a way forward will subsequently be made after studying the report in detail.”

De Freitas said it was “astonishing that a minister would request an investigation into financial malfeasance to be terminated prematurely unless there is something to hide”.

The Werksmans probe‚ Prasa board chairperson Popo Molefe said last year‚ predated that of the Public Protector's scathing “Derailed” report which had probed 32 complaints against Prasa‚ the majority of them relating to maladministration in tenders totalling R2.8-billion.

An independent investigation led by Werksmans Attorneys had been prompted by several irregularities identified by the Auditor-General in a draft report.

That internal audit was instructed to review all payments over R10-million made from April 1 last year to check for irregular‚ wasteful and fruitless expenditure.

Molefe said at the time that this was all part of the cleaning up of the parastatal and “enhancing good corporate governance”.

De Freitas said on Tuesday: “We need answers from minister Peters on her about-turn on such an important investigation that saw a botched R51-billion locomotives tender that was smeared by Gupta involvement.”

It emerged‚ in June this year‚ that former Prasa CEO Lucky Montana had written a letter‚ in October 2012‚ setting out accusations that the Gupta family and Duduzane Zuma schemed to capture the parastatal and grab a R51-billion tender for a bidder they represented.

The Gupta family has denied the allegations.

“Specifically‚ minister Peters must avow that this latest move has nothing to do with President Jacob Zuma’s and her relationship with the Guptas‚” said De Freitas.

“Minister Peters bases her interference on spurious reasons stating that the investigation is ‘endless and without a clear scope’ or ‘objective’‚ which is completely baseless and untrue.

“The objectives of this investigation are clearly spelled out in the Auditor-General’s scathing report‚ a report that the minister herself has seen and has never questioned the veracity thereof.”

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