A report by the auditor general on the Passenger Railways Agency of South Africa’s finances for 2014-15 noted that “irregular expenditure” accounted for more than R700 million and a further R19 million for “fruitless and wasteful” expenditure.

This comes in the wake of the dismissal of Prasa’s chief executive‚ Lucky Montana‚ and his counter action of laying fraud and criminal charges against a number of Prasa executives.

The Prasa board said Montana’s removal was not linked to the controversial R3.5 billion locomotive deal.

Daniel Mtimkulu‚ the former manager of engineering services in charge of the train deal‚ resigned after questions were raised over his academic qualifications.

He appeared in the Johannesburg Magistrate’s Court on Wednesday on a charge of fraud and uttering relating to his qualification. Mtimkulu is out on R20 000 bail and his case resumes on August 25‚

And‚ on August 3‚ the public protector‚ Thuli Madonsela‚ will make public her findings on allegations of corruption‚ fraud‚ nepotism and financial mismanagement at Prasa‚ first lodged with her office in 2012.

The Prasa board said on Friday that an investigation would be launched and that criminal charges would be instituted against any person who had defied governance controls.

It added that it had noted “weaknesses in corporate governance processes” and would deal with supply chain management problems as well as take measures to limit wasteful expenditure.