The Democratic Alliance says it will submit an application to the Passenger Rail Agency of South Africa (Prasa) in terms of the Promotion of Access to Information Act (PAIA) to request the rail agency to fully disclose documents showing concrete proof of VBS Mutual Bank’s compliance with the National Treasury.
This follows media reports that the cash-strapped Prasa is allegedly investing R1-billion with VBS Mutual Bank‚ the bank that lent President Jacob Zuma R7.8-million to pay back money in the Nkandla scandal‚ the DA said on Sunday.
“In terms of Section 7 of Public Financial Management Act (PFMA)‚ Prasa is bound to act within the ‘prescribed framework’ for their banking‚ cash management and investments. S7(2)(b) requires that a public entity may only open a bank account with (a) Treasury approval and (b) after prescribed tender processes have been complied with said DA shadow transport minister Manny de Freitas.