President gives SIU go-ahead to probe Prasa ghost workers and tender contracts

The Special Investigating Unit (SIU) has been given the green light to investigate the Passenger Rail Agency of South Africa’s (Prasa) employment of thousands of ghost employees.

The SIU’s probe will also look into two lucrative contracts of supply and maintenance.

This follows after President Cyril Ramaphosa signed proclamations authorising the unit to investigate allegations of maladministration and improper or unlawful conduct by officials or employees.

The state’s anti-corruption agency is also tasked with recovering financial losses suffered, the gazette dated February 14 stated.

Prasa revealed to Parliament’s standing committee on public accounts in 2022 that after launching their Operation Ziveze, 1 159 employees suddenly resigned and they had uncovered 3 000 ghost employees.

The entity’s top brass also stated that it had referred the matter to the SIU, which agreed to follow the money and look at who was paid.

According to SIU spokesperson Kaizer Kganyago, the probe will look into maladministration in Prasa affairs relating to fraudulent liability claims processed and paid by the entity’s Group Insurance Department, including claims paid as one-time vendor payments.

“The probe will also extend to employment of ghost employees identified by Project Ziveze in August 2021,” he said.

Kganyago said they were also investigating the Swifambo leasing contract that was supposed to provide the parastatal’s long-distance locomotive fleet with a much-needed injection of 70 state-of-the-art Afro 4000 locomotives.

This was a failed tall train multibillion-rand project.

“Proclamation 153 of 2024 empowers the SIU to probe offences that were committed against the Prevention and Combating of Corrupt Activities Act of 2004 in connection with the affairs of Prasa in relation to the award of tenders for the supply of various train locomotives to Swifambo Rail Leasing Pty Ltd, and the supply and maintenance of an integrated security access management system at various train stations to Siyangena Technologies Pty Ltd.

“The proclamation covers allegations of unlawful and improper conduct that took place between January 1, 2010, and February 16, 2024, the date of the publication of the proclamation or before January 1, 2010 and after the date of the proclamation that are relevant to, connected with, incidental to the matters or involves the same persons, entities or contracts investigated,” said Kganyago.

Prasa’s Board of Control welcomed the proclamation, saying: “The investigations will further enhance clean and effective governance within the entity and eradicate corruption within the organisation. The board believes that a great deal of progress has been made in eradicating corruption within the organisation and promoting behaviour that is professional and lawful. By combating corruption, Prasa can better fulfil its mandate of providing reliable, efficient, and affordable train services to the people of South Africa. The board urges all Prasa employees to co-operate fully with the SIU investigations.”

Cape Times