South African state-owned enterprises have a reputation for draining the government’s purse and costing taxpayers billions. At rail agency Prasa, the rot seems deep within as theft and corruption are investigated by the Organised Crime Unit.
Prasa spokesperson Makhosini Mgitywa said the rail agency’s administrator was given nine priorities.
“One of them is consequence management, people have been suspended. Four people recently were dismissed related to the irregular security tenders,” Mgitywa said.
Mgitywa said the process to reform the institution will take time and will not be easy.
“It’s an organisation that was run by malfeasance. When it starts rotting from the top, that rot filters down to even lower levels,” he said.
Prasa has also had to deal with its own people allegedly colluding with external companies, allegedly taking assets worth millions.
Recently, two people were arrested on charges of theft.
The two accused are denying all allegations and say the equipment was moved from Prasa’s premises to an external railway company for safe-keeping.
The State’s evidence suggests the plan was to steal the equipment worth R2.2-million to benefit the railway company owned by the second accused in the matter.
Bail for the two accused will be handed down on Thursday.
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