National Treasury must conduct investigation into contracts‚ not Prasa: DA

Following the public announcement on Thursday by the Passenger Rail Agency of South Africa (Prasa) board of steps they would take to address problems at the public entity‚ the Democratic Alliance (DA) said it would request an explanation as to why Prasa had decided that only an “internal audit” of contracts awarded above R10-million would be conducted.

“The Public Protector‚ Adv (Thuli) Madonsela‚ was clear in her remedial recommendations that it was the National Treasury which should conduct this critical investigation‚” DA MP Manny de Freitas said.

“We will also seek clarity as to whether all particulars of financial misconduct that the Public Protector had uncovered have indeed been reported to the National Treasury and the Auditor General – as per her remedial recommendations. Today Dr (Popo) Molefe referenced only an investigation undertaken by a private firm‚ again at the behest of Prasa.”

 Madonsela found in her report that tender contracts had been improperly awarded and extended to the tune of R355-million. Prasa had also improperly incurred an over expenditure of R523‚792 767.

“These findings are indeed so serious that it cannot be left to Prasa to internally investigate it alone – especially when a Chapter Nine institution had set out otherwise.”

De Freitas said that while the DA welcomed efforts by the Prasa board to take the necessary steps to act on the Public Protector’s report‚ it was crucial that every single recommendation was acted on.

“Therefore‚ in addition to seeking further clarity on the board‚ the DA will continue to push for the board to appear before the portfolio committee on transport‚ so that a clear and comprehensive timeline on acting on these recommendations can be provided and monitored.

 “We will also seek regular report backs to the committee in this regard‚ and that their turnaround strategy is tabled before the committee for scrutiny.

“This is the only way to ensure that Prasa is turned around for the better‚ and that corruption is rooted out‚ once and for all‚” said De Freitas.

Prasa announced earlier on Thursday that it would deal with employees implicated in irregularities‚ and wasteful and fruitless expenditure as contained in the Public Protector’s report.

Molefe‚ who chairs the Prasa board‚ said that prior to the release of the Public Protector’s report‚ the board had commissioned an independent investigation led by Werksmans Attorneys into several irregularities identified by the Auditor-General in his draft report.

He said that Prasa’s internal audit was instructed to review all payments over R10-million made from April 1 last year to check for irregular‚ wasteful and fruitless expenditure.

 

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