Ex-Prasa CEO Montana denies there was irregular expenditure of R550m in 2014

But he said the Auditor General issued qualified findings because of delayed audited financial statements.

A screengrab of former Prasa CEO Lucky Montana appearing at the state capture inquiry on 16 April 2021. Picture: SABC/YouTube

JOHANNESBURG - Former Prasa Group Chief Executive Lucky Montana on Friday said it was not true that the rail agency had a R550 million irregular expenditure during his time in 2014.

But he said the Auditor General issued qualified findings because of delayed audited financial statements.

Montana is testifying about the rail agency at the state capture commission.

He again blames former board chair Popo Molefe for distorting facts and misleading the commission.

READ: Montana accuses Zondo inquiry of favouring ex-Prasa board chair Molefe

Montana said if there was irregular expenditure it was after his tenure.

“If you look at Mr Molefe’s statement, he’s basically conflating the financials of 2014 and 2015. In 2014, what caused the delay was the accounting treatment and the auditors had closed, in 2015, it is a different matter altogether.”

Montana said Molefe inflated Prasa's irregular expenditure to create work for Werksmans Attorneys.

He said Molefe even ignored former Minister Dipuo Peters when she queried the fees that were paid to Werksmans.

Peters told the commission that she understood that Werksmans was appointed without procurement the first year but she didn’t understand why in the subsequent years, the contract was not regularised and she told Molefe to terminate it.

Montana said: “To create work for Werksmans, they had to raise the numbers. The higher the irregular and wasteful expenditure at Prasa, the higher the value of 10% for Werksmans.”

WATCH: Lucky Montana, former Prasa CEO, in hot seat at Zondo Inquiry

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