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Big BEE deals scheduled for the railways

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Prasa has earmarked at least 30% of the R40-billion allocated by the government for the next 10 years for black economic empowerment groups.

The rolling stock programme involves the acquisition of 7,224 Metrorail coaches in an effort to meet passenger demand over the next 20 years.

The money will also be used to upgrade and construct new rail infrastructure such as depot facilities and signalling.

Speaking to Prasa's 300 managers in Centurion yesterday, group chief executive Lucky Montana explained how the 30% would be split.

"From this 30%, 3% will go to an educational trust, 10% to an active equity trust for suppliers, and the remaining 10% will be channelled towards the employees (excluding management) of the joint venture," he said.

Prasa was recently criticised by the Black Business Council for deciding to allocate 30% of the contract value to BEE companies.

Montana said he had recently met with the council leadership and gave a breakdown of how the programme's BEE component would be shared..

Touching on the importance of discipline, Montana said the company was to discipline employees who were responsible for its property investment arm performing below par.

He said two forensic audit reports by Deloitte on the parastatal's Corporate Real Estate Solutions (Cres) found that 120 employees had pocketed rental money meant for the company.

"The level of fraud in this business is amazing," said Montana.

He said Cres should generate about R1-billion a year.

"Since Cres was created two years ago, we invested R556-million in 2010 and R590-million last year. However, we can't even collect a third of the R1-billion of the projected revenue," he said.

Montana said Cres would in the next three months expel the employees who had been named in the forensic audit.

"If employees have been named in the forensic audit but we don't have enough evidence to fire them, we will reach a separation agreement with them," he said.

Comments

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Sun May 19 12:24:50 SAST 2013 ::

Sep 5, 2012

cornelius

OH please please please, don't f.ck thi sup - a good efficient public transport system will be an important driver of economical growth - don't fu.ck it up with BEE cronyism. I am worried about the " identifying bl.ack people to benefit..." Should there not be an open and transparent tender system for contracts ?
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Sep 5, 2012

Mrazane

I would not invest in this company the rail system has been inefficient for so long, and the money that potential investors put in is being embezzled by officials, even if you fire them there are always other vipers who will continue with the embezzlement.
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Sep 5, 2012

Papage

Mining Companies should do the same, Employees must have shares in the mining, they must own their mining companies and this ill payment and strikes will stop.
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Sep 5, 2012

eisleben

Feeding time for opportunistic vultures
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Sep 5, 2012

kaboyellowman

"From this 30%, 3% will go to an educational trust, 10% to an active equity trust for suppliers, and the remaining 10% will be channelled towards the employees (excluding management) of the joint venture," he said
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what about the remaining 7%. where does it go?
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Sep 5, 2012

Bombay_Mafia

Identify black people to benefit se voet & am shivering already. Just tell us exactly who is going to benefit coz we know that COMRADES, COMRADES families, extended families, relatives, extended relatives, friends and extended friends are going to be beneficiaries and the rest of the population is going to pay for everything.
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Sep 5, 2012

Lehido

Fix your trains PRASA, they are in shambles..............Stop giving this shat, feeding opportunistic poiliticians and their families
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Sep 5, 2012

Tasto

Plse not just only BEE companies but ordinary folk who has been & still uses the public transport chance to own ownership and get something out of this mess too !!
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Sep 5, 2012

The-Vince

@kaboyellowman.............Good question.....They've already embezzeled the 7%.....hance it's not mentioned anywhere in this report......investigations should start immediately.....I blame BEE for the not mentioned 7%.
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Sep 6, 2012

Pontshopontsho

please fix all trains with that money thee commuters deserve better and safer ride
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