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COSATU worried by illicit payments at Prasa

The Congress of South African Trade Unions (COSATU) is gravely concerned about the rehabilitation of Metrorail following reports of illicit payments to the tune of R2.7 billion to non-existent companies by the Passenger Rail Agency of South Africa (Prasa).

According to an article in the Sunday Times, the Hawks are probing the payment of R2.7 billion in two tranches to non-existent companies, Crig Maziya and Macre. The monies are alleged to have been paid into the account of Maziya General Services, a company believed to have won contracts from a range of government departments and state-owned entities. It is said this was done because Crig Maziya and Macre did not have bank accounts or tax certificates and paying the funds to them would present an audit risk.

The three companies are believed to have the same owner, while Crig Maziya and Macre are involved in the Metrorail (a division of Prasa) R18 billion signalling contract. COSATU is disturbed by the callousness demonstrated by Prasa officials who understand all too well the dire consequences of a train line that does not have a well-functioning signalling system.

In the period before the Covid-19 pandemic, multiple Metrorail train crashes, several of which were head-on, were blamed on the faulty signalling system or human error while utilising the manual signalling system. If Metrorail is to return to and surpass transporting pre-Covid passenger numbers, it requires a modernised signalling system. It goes without saying that awarding such a crucial tender to inexperienced companies is tantamount to toying with the lives of passengers who are mainly from working class and poor communities. They rely on the train service for their commute because it is affordable owing to the subsidies it receives from government.       

COSATU welcomes the investigation into this debacle and calls on the Hawks to leave no stone unturned to uncover the truth, follow the money trail and ensure those guilty of wrongdoing are prosecuted and imprisoned. The Federation cannot stand by while unscrupulous individuals gamble with the lives of workers and the poor. It is time the corrupt in society get the message that the decade of state capture is truly over.

Issued by COSATU    

Zanele Sabela (COSATU National Spokesperson)

Mobile: 079 287 5788 / 077 600 6639Email: zaneles@cosatu.org.za