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Prasa on track to recoup R2.6bn for 2013 irregular locomotive tender

The High court in Joburg found the tender was rigged to favour Swifambo, a company that used its BBEE to front for a Spanish manufacturer.

Popo Molefe. Picture: whoswho.co.za

CAPE TOWN - Passenger Rail Agency of South Africa (Prasa) Chairperson Popo Molefe says the agency is pressing ahead with efforts to recoup R2.6 billion from Swifambo Rail Leasing for an irregular locomotive tender.

Earlier this month, the High Court in Johannesburg nullified the agency's controversial contract with Swifambo which had been signed in 2013 under former CEO Lucky Montana's watch.

The Prasa Board led by Molefe went to court in 2015 to have the tender set aside.

Swifambo has until Monday to file its appeal papers in court.

Regardless of whether the company appeals, Prasa Board chairperson Molefe says the agency is going to try to recover the money it paid to Swifambo.

“I have already written to Swifambo to tell them to pay back the money. We’d already told them before. We had issued summons before.”

The High Court in Johannesburg found the tender was rigged to favour Swifambo, a company that used its Broad-Based Black Economic Empowerment rating to front for a Spanish manufacturer.

The company supplied locomotives that were "too tall" for the local rail network.

(Edited by Zinhle Nkosi)

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