Parliament to probe Prasa

Cape Town – The Passenger Rail Agency of South Africa (Prasa) will be investigated by the portfolio committee on transport.

The terms of reference for the investigation into maladministration at the state rail company has been finalised, the committee said in a statement issued on Tuesday. The time frames are yet to be finalised, chair Dikeledi Magadzi said.

Speaking to Fin24 by phone on Tuesday, Magadzi explained that the inquiry will look into maladministration related to human resource management and development, the use of financial resources and how procurement is done.

“The critical issue is, the fact until today, Prasa has not submitted its 2016/17 annual report. It is supposed to be submitted at the end of September every year.  We are just a few weeks away from the end of the financial year of 2017/18,” she said.

Magadzi said that the investigation will tackle irregular expenditure as was seen in its procurement processes.  As well as the irregular and illegal contracts entered into with service providers and issues raised in the Public Protector’s 2015 report Derailed.

In February former Prasa CEO Lucky Montana appeared before the Eskom inquiry. His testimony opened up the question for an inquiry by the transport committee.

When asked if Montana’s testimony had led to the decision for the Prasa inquiry, Magadzi said "absolutely not”.

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