R9bn tenders and land: Mbalula’s ex-spokesperson Ayanda Allie wants Ramaphosa to expand SIU Prasa probe

Apart from investigating controversial tenders worth more than R9bn at the Passenger Rail Agency of South Africa (Prasa), the Special Investigating Unit (SIU) should probe the relocation of thousands of people who live on rail land which is costing the state millions of rand. 

This was a request from former transport ministry spokesperson Ayanda Allie to President Cyril Ramaphosa.

This week, the president authorised the SIU to probe allegations of maladministration at Prasa. Part of the scope for the investigation includes irregular contracts covered in chief justice Raymond Zondo's state capture report. Zondo, in that report, said Ramaphosa fell short of fighting corruption at Prasa from as early as 2015. 

SIU investigations will include the awarding of security contracts worth R5.5bn to Siyangena Technologies, a R3.5bn locomotive tender awarded to Swifambo Rail, Leasing, which courts found irregular, and the issue of ghost employees. 

Allie believes maladministration in the entity affected more than security and locomotive tenders.

“It is important to broaden the scope of the SIU’s investigations to reach maximum efficacy and impact. We need to understand first, what was the cause of [the] theft, vandalism, decay and dilapidation of Prasa’s assets. This happened before the Covid-19 outbreak, so perhaps we need to start looking at 2017,” she said. 

Allie raised concerns about unspent capital expenditure budgets at the entity while it faced infrastructure collapse. The journalist-turned-politician said the relocation of thousands of people settled on rail reserves, particularly in the Western Cape, also needed to be investigated.

“The delay in relocation of those who have encroached on Prasa reserves especially in the Western Cape — is it a case of inter-party politics? ... or maybe whenever land has been identified prices are inflated and therefore relocation is prevented,” she said. 

According to the 2022/23 Prasa report, the entity needed to relocate about 5,000 households. The report cited security challenges faced by contractors for the delays in relocation.

Sunday Times previously reported activist Loyiso Nkohla, who was killed at Philippi railway station while attending a meeting last year, was allegedly being extorted for a percentage of money he received from a Prasa contract. He had a contract to act as a community “social mediator” for Prasa, facilitating the resettlement of families.

State Capture report findings on Prasa tenders:

Zondo in the his report flagged inaction from Ramaphosa and the ANC top 6 in fighting corruption at Prasa, saying he and the party did not take much action after former member board Popo Molefe raised concerns about maladministration to them in a meeting in 2015. 

Zondo said though the courts found the Siyangena Technologies and Swifambo Rail Leasing tenders were tainted by corruption, investigations into criminal charges laid against those possibly involved were not pursued for years after being reported in April 2017. The tenders were awarded during the controversial tenure of Lucky Montana as Prasa CEO. 

“In judgments handed down in review applications aimed at having the multibillion-rand Swifambo and Siyangena contracts set aside, courts found that not only were the procurement processes followed irregular, but that they were also tainted by corruption,” the report read.

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