'Deep dive' into PRASA uncovered serious fraud, SIU tells SCOPA

CAPE TOWN - The Special Investigating Unit (SIU) said that its "deep dive" into the Passenger Rail Agency of South Africa (PRASA) had uncovered serious fraud, including ghost employees and the destruction of documents.

The SIU also said that past executives like former CEO and current MK Party MP, Lucky Montana, were offered gratification through the purchase of houses worth millions in return for contracts.

The SIU briefed Parliament's finance watchdog SCOPA on Wednesday on its current investigations into PRASA, including some of its findings.

SIU head, advocate Andy Mothibi, told MPs that as part of the Zondo Commission report, it was recommending that the president establish another commission to dive deep into PRASA.

This ultimately led to another proclamation for a further probe into PRASA.

"And the diving deep, as they put it, was to investigate why PRASA was allowed to be in a state of ruin," Mothibi said.

Lead investigator, Zodwa Xesibe, noted how the multi-billion rand Swifambo and Siyangena contracts had been set aside, but also how contractors bought properties worth over R15 million, some for former CEO, Lucky Montana.

"We also identified two properties in the name of the former GCEO that were bought during the period in question. Property one, it was purchased for R11 million paid by company D."

Mothibi also noted how documents had been destroyed during the investigations into PRASA, a matter that also raised the concerns of SCOPA members.