Prasa’s multibillion rand contract could be set aside

Concerns were raised by the public protector and the Auditor General about the deal.

FILE: Prasa took journalists aboard the new trains it purchased from a Spanish manufacturer to prove that they comply with standards on 13 July, 2015. Picture: Kgotatso Mogale/EWN.

JOHANNESBURG - Passenger Rail Agency of South Africa (Prasa) chairman, Popo Molefe, says he believes there's a good chance a multi-billion rand contract will be set aside, based on the evidence the rail agency has.

Prasa is seeking a refund after finding that a contract signed with a local company to supply new locomotives was rigged from the start.

It's been reported Swifambo Rail Leasing has no experience in the rail industry and partnered with Spanish manufacturer Vossloh to supply 70 locomotives.

Concerns were raised by both the public protector and the Auditor General about the deal.

Molefe says they have now taken legal action and want the matter to be dealt with in open court.

"We believe we do have a chance. We would not have loved to do it, but we are dealing with a very difficult situation. The Auditor General has made certain finding [which] are confirmed by our own investigation. We have got to act."