Prasa’s awarding a multibillion-rand train maintenance tender to companies with no capacity, facilities or finances could keep the entity off the rails.
Prasa faces the threat of total collapse after shedding millions of customers, and haemorrhaging revenue over the past four years. Now its handling of a R7.5 billion overhaul and maintenance tender has the potential to deepen the existing crisis.
The Passenger Rail Agency of South Africa has suspended its former acting CEO, David Mphelo, in the wake of claims that he was involved in "irregularities in recruitment and procurement".
Overpayments and irregular appointments were among the reasons the State Passenger Rail Agency suspended its acting legal head Thato Tsautse an acting judge who was expected to return to the Pretoria high court this month.