February 20, 2024

#UniteBehind welcomes the recent proclamation (attached) signed by President Cyril Ramaphosa authorising the Special Investigating Unit (SIU) to delve into allegations of serious maladministration within the Department of Home Affairs and the Passenger Rail Agency of South Africa (PRASA).

The proclamation expands existing SIU investigations into maladministration, improper conduct, wasteful expenditure, corruption, and fraud at PRASA to the infamous Siyangena and Swifambo contracts, worth at least R10 billion in total. It also expands the mandate to investigate fraudulent insurance claims and the ‘ghost worker’ scandal uncovered at PRASA last year. The proclamation instructs the SIU to commence the recovery of losses flowing from the above (e.g. through asset forfeiture).

However, allegations of corruption, maladministration, and state capture at PRASA first surfaced in 2015 with the publication of the Public Protector’s ‘Derailed’ report. Following investigations by PRASA and its attorneys, criminal cases regarding the Siyangena and Swifambo were laid in 2017. Despite Lt. General Lebeya testifying at the State Capture Commission that the Hawks’ investigations into the Swifambo and Siyangena corrupt contracts were 90% and 75% complete, respectively, no person has been brought to book regarding these cases. Both contracts were concluded more than ten years ago. The judicial review and setting aside of both contracts on the basis of corruption occurred more than five years ago.

It seems that the Hawks could not be trusted with concluding their investigations. The statements and uncovered documents forming part of the investigation must be handed over to the SIU, aiding in the speedy resolution of its now-expanded mandate. However, the status of the Hawks’ investigation remains unclear.

The recent proclamation was delayed by more than a year, seemingly due to Transport Minister Sindisiwe Chikunga failing to issue a ‘letter of support.’

Information already in the public domain has shown that ex-CEO Lucky Montana and ex-Board Chair Sfiso Buthelezi personally gained exorbitant amounts of money from corruption at PRASA. Buthelezi, now the Chair of Parliament’s Standing Committee on Appropriations, or his companies allegedly received more than R120 million through corruption. R99 million of this allegedly came through the Swifambo contract. Buthelezi has sued #UniteBehind for R5 million for stating such, last year. Montana allegedly has gained R45 million in property for his role in facilitating the Siyangena corrupt contract, where he “simply ignored procedures, bypassed committees and manipulated documents,” according to the Supreme Court of Appeal.

These and the rest of the cabal that infiltrated and hollowed out PRASA must be brought to book and made to #paybackthemoney.

State capture and maladministration at PRASA have led to the destruction of our commuter rail system, forcing the poorest of the poor to waste scarce income on expensive transport modes. Recently, GroundUp reported that some commuters spend around 35% of their income on transport alone. Trains are four times cheaper than taxis and buses.

The investigation into PRASA’s affairs, including the awarding of tenders and the processing of fraudulent liability claims, is of the utmost importance. It is imperative that those responsible for such malfeasance are held accountable and face appropriate consequences. A clear message must be sent: PRASA will no longer be used as an ATM for the politically connected.

As an organisation dedicated to social justice, accountability, and affordable public transport, #UniteBehind calls for appropriately harsh outcomes and punishments for those found guilty of state capture and corruption at PRASA. We urge the SIU to conduct its investigations swiftly and diligently, ensuring that all assets and money stolen are returned to the state.

Furthermore, we emphasise the importance of implementing systemic reforms to prevent future instances of corruption and maladministration. The SIU’s role in identifying system failures and making recommendations for improvement is paramount in this regard. We urge the government to heed these recommendations and take decisive action to strengthen governance and oversight mechanisms within state entities.