Prasa property chief executive on special leave

2011-06-23 13:31

The CEO of the Passenger Rail Agency of SA’s (Prasa) property management company has been placed on special leave following a probe into alleged tender fraud and irregularities, Prasa said today.

“The forensic investigations were launched after preliminary investigations revealed widespread fraud by officials in collusion with private companies,” Prasa said in a statement.

“The nature and level of tender fraud has rendered an otherwise viable property division within Prasa unprofitable. Our commitment is to root out, not only corruption among our own officials, but even those companies involved in the defrauding of taxpayer monies,” said Prasa group CEO Lucky Montana.

Montana would act as CEO of Prasa Corporate Real Estate Solutions.

Prasa said eight private companies had been implicated in the alleged irregularities and three officials had already been suspended pending full forensic investigations.

It also took up Finance Minister Pravin Gordhan’s call to blacklist companies involved in corruption, to recoup taxpayers’ money from these companies and fire officials found guilty.

Prasa said it would ask companies to write a letter explaining why they should not be blacklisted from doing business with government, why they should not pay back money illegally received, and why Prasa should not institute criminal action against those proved to have committed fraud. 

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