SIU: Ghost workers, procurement fraud remains issue at PRASA
Special Investigating Unit head Andy Mothibi has detailed serious fraud, including ghost employees and document destruction, at the Passenger Rail Agency of South Africa.
On Wednesday, the unit briefed Parliament on its current investigations into PRASA, including some of its findings.
Mothibi told MPs that maladministration and corruption remain a problem at the rail agency.
“There's quite a number of verifications that the teams will be doing,” Mothibi said.
“But it's a vulnerable area in the organisation, where there would be fictitious employees, so to speak. Those who have retired, those who have resigned, and so on, but still kept in the system one way or another.
“And that's either deliberate or neglectful, and the investigations will bring that out.”
Mothibi warned that the systems put in place to monitor procurement at PRASA must be closely monitored.
“Of course, where human beings are involved, there's a measure of collusion. That part is the part that really needs to be monitored as well, from the process of risk management, checks and balances, and so on.
“There's also procurement involved in it, but in the insurance space. Insurance is a big area, a big business area of PRASA. And as you could probably have related, there are fraudulent claims.
“The ghost employees are more human capital management. But again, there are elements of maladministration and corruption as well. That system needs attention as well.”
SIU lead investigator Zodwa Xesibe noted how the multi-billion-dollar Swifambo and Siyangena contracts had been set aside, as well as how contractors bought properties worth over R15 million, some for former CEO Lucky Montana.
“We also identified two properties in the name of the former GCEO that were bought during the period in question. Property one was purchased for R11 million, paid by ‘Company D’.”
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