Prasa forensic probe into multibillion rand project finds governance weaknesses

An internalPassenger Rail Agency of South Africa(Prasa) probe into allegations of corruption into its multibillion-rand general overhaul (GO) programme points to governance weaknesses in the execution of the project, including allocation controls, pricing discipline, performance management and oversight mechanisms. Prasa, through the rolling stock recapitalisation programme, procured new rolling stock for its Metro Rail operations as part of its long-term modernisation strategy. The new fleet was designed to be phased in progressively, while the yellow legacy fleet would be phased over an extended transition period, projected to conclude around 2033.

At the time of initiating the GO programme, the legacy fleet was experiencing declining reliability, increasing technical failures, safety compliance pressures and reduced availability, which materially affected service reliability and commuter confidence. The report by law firm Webber Wenztel, released on Wednesday and seen by theMail & Guardian, was triggered by a whistleblower account of one of the GO contractors, CTE Western Cape, who worked with the now-suspended Prasa rolling stock senior manager, Arthur Trenuch. CTE allegedly employed Trenuch’s son and was getting information on the payments made to contractors, failing to acknowledge that they did not have the same share of work based on the contract.

The investigation further revealed that CTE had overcharged Prasa in access of R58 million. Another company, Armature, overcharged the state-owned enterprise by R21m and Karabo-Nhlamolo Projects Cooperative (KNPC) did so by R7.5m. Prasa spokesperson Andiswa Makanda confirmed to theM&Gthat the agency commissioned the forensic investigation into the management of the GO programme.

[paywall]

The report found that while the GO project was conceived as a strategic intervention to stabilise Prasa’s legacy fleet during the transition to new rolling stock under the rolling recapitalisation programme, there were weaknesses in its execution. “While the original strategic rationale remains sound, the execution of the programme revealed governance weaknesses in allocation controls, pricing discipline, performance management and oversight mechanisms,” it said. The weaknesses had been subjected to forensic review, internal reform and strengthened governance intervention, the report added. It also found that as at 31 December 2025, R3.81 billion had been expended under the GO programme, with 958 assets allocated across the first three years.

[/paywall]