Minister Mbalula confirms that 39% of PRASA managers’ qualifications could not be verified

In response to a question by the Democratic Alliance (DA) in Parliament this week, the Minister of Transport, Fikile Mbalula confirmed that the South African Qualifications Authority (SAQA) could not verify the qualifications of as many as 39% of all managers at the Passenger Railway Association of South Africa (PRASA).

This is a shocking statistic, especially given the dire straits the entity finds itself in. Furthermore, it only exposes PRASA to all manner of risks and the entity simply cannot afford any more blunders, especially not ones as costly as the 13 ill-fitting Afro-4000 locomotives.

The fact that SAQA cannot verify the qualifications of 39% of PRASA’s managers, is further evidence that corporate governance at the entity has been systematically eroded to such an extent that seemingly every Tom, Dick and Harry can be hired to perform very critical technical work that requires special artisan skills.

This also means that the Minister cannot guarantee the safety of our commuters who desperately rely on trains. We have seen constant delays in trains, constant breakdowns and passengers getting stuck on railways which in some cases have resulted in major accidents. This comes at the backdrop of thousands of graduates who are struggling to find work, yet their jobs and opportunities are essentially are occupied by unqualified personnel at PRASA.

The DA calls on Mbalula to expedite the skills audit process at PRASA and ensure that all posts are filled by qualified individuals who are fit for purpose.

#16DaysofActivism: Government failing to lead by example

As we prepare to mark 16 Days of Activism against Gender-Based Violence (GBV), cases of sexual harassment against women in the workplace and public spaces continue unabated. Female workers are forced to work in frightening, hostile or humiliating environments and experience various unsolicited forms of sexual conduct.

Of major concern is that these obscene abuses of women are taking place inside Government institutions and state-owned enterprises (SOEs). To be a woman in this country is to live under the relentless threat of violence that has been deeply engrained in institutions across South Africa.

Below is a summary of a select number of state organizations where cases of sexual harassment were reported in 2019:

South Africa National Defence Force (SANDF)
The Mail and Guardian reported on a leaked internal SANDF report which indicates at least 41 cases of sexual harassment and assault against women by their male colleagues.

Sexual harassment against women in the armed forces is so rampant that in August last year the SANDF held a conference at Air Force base in Swartkop to deal with reports of sexual assaults in barracks and elsewhere.

Transnet
On 30 October 2019, the Centre for Applied Legal Studies represented a woman in suing Transnet in the Joburg Labor court for failing to protect her against relentless sexual harassment at the hands of a senior manager for 6 years.
Special Investigation Unit
Parliament wants Justice Minister Ronald Lamola to probe SIU head Advocate Andy Mothibi for alleged abuse of power and using the institution’s resources to “conceal sexual harassment tendencies and the victimization of women employees”
Prasa/Metrorail
PRASA continues to bury its head in the sand when it comes to addressing the safety of female customers who use the Metrorail service for their daily commute.

With trains that are always overcrowded, women fall prey to sexual predators who grope them on their commute. Women always complain that there is no mechanism in place or someone to report it to.

These are but a few examples of the rampant culture of sexual misconduct that have seeped into State institutions. Moreover, the seeming lack of accountability and reluctance to hold alleged perpetrators to account is chilling.

We need urgent, clear and decisive action that goes further than jailing perpetrators and that addresses the root causes of the social and moral collapse. We also need strong leadership both in government as well as in the form of a Parliament that makes effective legislative decisions.

The Democratic Alliance (DA), therefore, intends to introduce a private member’s bill that will strengthen the powers granted to courts and the SAPS to provide essential safeguards and make sure that the rights of the society’s most vulnerable are protected. Our private member’s bill will address legislative gaps and shortfalls; and will have due regard to innovative measures introduced in other countries, where such measures have a proven track record of success and can be adapted for the South African context.

Our key proposals consist of:

  • Providing for a single, defined process of applying for and obtaining an order from the courts protecting against various forms of inter-personal and domestic abuse, that may include acts of bullying or stalking;
  • Ensuring the speedy service and enforcement of protection orders through alternative means, in order to ensure that victims are immediately provided protection after a protection order is granted. This is to avoid lengthy delays that often result from backlogs and the lack of capacity at South African Police Service (SAPS) stations; etc.

We believe that the government has shown inaction for too long and that public sentiment on the issue has now reached a boiling point.

The DA also calls upon Government to lead by example by investigating and taking action on sexual misconduct claims which arise within Departments and SOEs.

President Cyril Ramaphosa has promised an Emergency Action Plan meant to deal with the scourge of GBV. The DA calls that this is broadened to pay particular focus on the women in government institutions such as the SANDF.

We also call for a more coordinated approach by Government institutions that will put an end to GBV in their places of work. This approach should not simply be workshops and leaflets. But it should ensure that abusers and rapists know that they will be caught, arrested and face the consequences of their harrowing acts against women.

South African women have voiced their fears, concerns, and anger in protests, marches, and memorial services across the country. To ignore the urgency of these calls would be an indictment on the National Government.

Ultimately, the issue of GBV cannot and will not be fixed only to a 16-day awareness campaign. The developments of the past two months are proof that the only way we can ensure any meaningful change in our society is a 365 day approach to activism against GBV.

Cyril and the ANC are coming for your pensions!

Fellow South Africans,

Today, we join millions of people around the world to celebrate International Workers’ Day.

We celebrate the victory of the hard-won fight for fair labour practices and employment standards, and honour the role organised labour played in the struggle for democracy in our own nation.

This public holiday was proclaimed in 1994 at the dawn of our democracy, to celebrate our freedom from an oppressive regime; to celebrate the power of the people.

But after twenty-five years of ANC rule, our freedoms are once again under threat. Ten million of us are without work at all. And those of us who do work are losing more and more of our income to the greedy and corrupt ANC that is looking for more and more ways to feed its connected crooks and cronies.

With every passing month, our wages and earnings buy us less as we pay more for electricity, fuel and VAT to feed ANC corruption and to cover for ANC failure at Eskom, SAA, PRASA and other state-owned enterprises. The latest increase came just last night, when the price of petrol went up by another 54c per litre.

But the state-owned enterprises are so chronically corrupt and bankrupt that they need still more of our money. And so, in the ANC’s manifesto, they speak about “prescribed assets”.

I want to send this stern warning to South Africans – the ANC is coming for your pensions! What the ANC and Cyril Ramaphosa mean by “prescribed assets” is that they are planning to force us to invest our pensions in these failing state-owned enterprises. Due to their own failures in government, they are now looking to make laws that force the Government Employees Pension Fund (GEPF) and private pension funds to use our pensions to keep these entities going, so that they can mask their failures and keep stealing. This is the policy of Cyril Ramaphosa and his ANC.

The ANC have stolen approximately R1.2 trillion through corruption and will not stop now. They have shown that there is nothing they won’t stoop to.

Fellow South Africans, this Workers Day comes just one week before the most important election since 1994. So, this Workers Day, you need to think about how you can protect your financial freedom and your future going forwards.

And I am here to put it to you straight that the party that will best protect your financial freedom is the DA. The DA will stand with workers and we will fight this. We will fight the PIC Bill to protect the hard-earned pensions of South Africa’s workers. We will fight in Parliament for financial freedom and protection of your hard-earned pension savings.

And I stand before you not just with promises of financial freedom, but with hard proof. The Western Cape has a long way to go, but just look at the progress we have made here in the past ten years.

After a decade of DA government, the Western Cape has the lowest broad unemployment rate in South Africa. At 23%, it is 14 percentage points lower than the SA average of 37%. There are 508 000 more jobs here now than there were 10 years ago.

Even after 3 years of bad drought, the agricultural and agri-processing sector grew here by 10 000 jobs, thanks in large part to the satellite technology that the provincial government put in place to assist farmers use water more efficiently. No surprise that we have the lowest rural unemployment rate, at just 15%. Or that we lead in land reform, with a 72% success rate for land reform farms here.

We’ve grown tourism jobs through our Air Access strategy which has added 14 new routes and 750 000 international inbound seats to this province, injecting R6 billion in tourist spending into our provincial economy.

In fact, on every single measurement of good provincial governance, the DA-run Western Cape comes first. We run the cleanest government, which simply means that we spend public money on the public. The Western Cape achieved 83% clean audits in the most recent financial year – well ahead of Gauteng at 52%.

That’s why last week, it came as no surprise when Good Governance Africa reported that the Western Cape is home to 12 of the 20 best-run municipalities in SA, and that the Western Cape is SA’s best-run province.

The Western Cape has the best basic education results, keeping the largest proportion of children at school until matric and achieving the highest real matric pass rates. We’ve built 132 new schools and over 2000 classrooms in the past decade and rolled out broadband internet to 1200 schools.

At 90% we have the highest proportion of the population within 30 minutes of a primary healthcare clinic and we’ve built two major new district hospitals – in Khayelitsha and Mitchell’s Plain. So, it’s not surprising that life expectancy is the highest in the country, increasing by 7 years since we took office.

Where the DA has provincial control – education and healthcare – we are streaks ahead of ANC governments. Now DA Premier Candidate Alan Winde wants to get provincial control of police and railways too.

Policing and trains will be much better run when they are controlled at a provincial level. When service delivery is closer to the people it becomes more responsive to their needs. Police and trains will never be efficient when they are run from Pretoria. When we fix policing and public transport, we will see even more jobs being created in this province, and that means more financial freedom to the people of the Western Cape.

If the DA is elected into National Government, we will introduce a Jobs Act to serve as an economic stimulus shock. We want to make doing business as easy as possible for companies that want to invest and create jobs in South Africa. South Africans are incredibly innovative and entrepreneurial, and that must be encouraged. This is what real freedom is all about.

In democratic South Africa, the fight for freedom happens at the ballot box. And today I put it to you that the best way to protect your freedom is to vote DA on 8 May. The DA’s vision is to build One SA for All, a country in which everyone’s rights are protected, as set out in our Constitution.

Every single vote is going to count if we are going to keep the Western Cape blue. Every vote counts to keep corruption out. Every vote counts to save our pensions from being stolen. So, on 8 May, go and vote DA and take your friends and family with you!

DA hands memorandum to PRASA demanding rail safety now

Note to Editors: Please find attached a soundbite in English and Zulu by Phumzile Van Damme and a soundbite in English by Manny De Freitas.

Today, the Democratic Alliance (DA) Gauteng Provincial Leader, John Moodey, the DA Team One South Africa Spokesperson on Corruption, Phumzile Van Damme, and the DA Shadow Minister of Transport, Manny De Freitas, handed a memorandum to Passenger Rail Agency of South Africa (PRASA). The DA was joined by numerous activists and concerned citizens to call for the urgent implementation of an emergency safety plan on our railways and the modernisation of rail infrastructure among other things.

This past week the DA conducted oversight inspections in Durban and Cape Town to assess the level of rail services across the country. We engaged with commuters about the challenges they face on a daily basis. Metrorail passengers are invariably subjected to unsafe, perpetually delayed and overcrowded trains. In a period of only four months, four people have died and 1000 commuters injured in train crashes in Gauteng alone. Today, a young boy in Cape Town was killed when he tragically fell from a moving train. Another tragic, needless loss of life at the hands of the uncaring ANC government who have failed to get PRASA into shape.

Corruption that has become endemic at PRASA has resulted billions diverted from infrastructure and safety upgrades. It is evident that PRASA is in a perpetual state of crisis and is more concerned with covering up corruption than improving the rail service. The uncaring ANC does not have a plan as PRASA remains completely unable to spend money on modernising trains and infrastructure with over half its budget unspent and with nearly R1 billion in fruitless and wasteful expenditure last year alone.

PRASA and the Department and the Minister of Transport must account for their lack of action to improve safety for the commuters. Measures must be put in place to modernise rail infrastructure and improve rail safely. We cannot allow more lives to be lost, we cannot ignore the plight of railway commuters any longer. The DA has designed a rail plan that will create a safe and well-managed railway system which puts commuters first and will ensure job security. The plan is based on five aspects:

  • Stabilising and modernising the current rail system
  • Merging Transnet and Prasa under the Department of Transport
  • Ceding control of Metrorail services to Metros
  • Diversifying ownership
  • Security related steps to improve commuter rail services

Only the DA has a plan to fix the railway service of South Africa that remains in shambles under the failing ANC. The Rail Enforcement Unit under the Western Cape government is another example of how the DA takes action and will not back down from calling for justice and accountability.

A DA-led government would be committed to real change that builds One South Africa for All, and put the people first by ensuring they are cared for and kept safe. South Africans have an opportunity to choose a caring party with a plan to improve rail services in 2019.

R5.7 billion ‘bailout’ for e-tolls hidden in Tito’s budget

After delving into the Minister of Finance, Tito Mboweni’s, maiden medium-term budget, the Democratic Alliance (DA) has serious concerns about a supposed R5.7 billion bailout for the failed e-toll system in Gauteng.

This money was not declared in the bailout discussion and the DA questions whether dubious accounting practices were used to disguise this bailout.

In the budget, R3 billion was transferred from Passenger Rail Agency of South Africa (Prasa) to Sanral’s non-toll network. This R3 billion and an additional R2.7 billion was then moved from Sanral’s non-toll network to the Sanral Gauteng freeway improvement project, informally known as e-tolls.

This “bailout” comes after the Auditor General Kimi Makwetu revealed that Sanral is facing a R6 billion funding gap due to their insistence to continue with the failed e-tolls project.

We believe this is a cunning and disingenuous way in which government is using tax payer money to fund a system that they are forcing down the throats of Gauteng taxpayers.

It is especially striking that the R3 billion transferred to the non-toll network went straight into the e-toll piggy bank, this after Minister Mboweni in his speech said that 75% of the national non-toll road network is “beyond its design life”. Instead of funding the single failed system in Gauteng, this money can be better spent to upgrade our road network across South Africa.

Additionally, whilst Prasa is on its knees the further defunding of the rail system will be to the detriment of millions of South Africans who depend on trains on a daily basis.

The DA will urgently be submitting a parliamentary question to both the Ministers of Transport and Finance to a demand an explanation. The people of South Africa deserve to know if this is indeed a hidden bailout and demand answers on why the taxpayer must rescue yet another failed government project.

Since its inception four years ago the DA has vehemently opposed the system, as it is ordinary citizens who have to bear the brunt of the failing ANC’s poor planning.

PRASA Board members paid R3 million incorrectly but no plan to pay it back

A reply to a DA Parliamentary question has revealed that during the 2016/17 financial year, eight PRASA board members incorrectly received a total of R3 million that they were not entitled to. The reply also confirmed that no plan had been made to ensure the millions are paid back to the embattled entity.

This violates Section 38 (c) i-iii of the PFMA of the general responsibilities of the accounting authority (in this case the PRASA board) which in terms of Section 86 justifies criminal proceedings to be instituted.

The breakdown of the incorrect remuneration is as follows:

(a)(i) During 2015/16 no remuneration monies were incorrectly paid.

During 2016/17 the following Board members had remuneration monies incorrectly paid to them:

(a)

Employee No.

(b)(i) & (iii)

2016/17

(c)(i)

Amount paid back

(c)(ii)

Amount Still owed

(d)

Payment Arrangement

(e) & (f)

Interest paid

1. R211 420. 92 Not paid back R211 420. 92 None None
2. R358 532. 19 Not paid back R358 532. 19 None None
3. R245 797. 44 Not paid back R245 797. 44 None None
4. R315 028. 27 Not paid back R236 271. 20 None None
5. R324 036. 04 Not paid back R324 036. 04 None None
6. R350 909. 18 Not paid back R350 909. 18 None None
7. R291 941. 62 Not paid back R291 941. 62 None None
8. R 1 077 322. 12 R 1 077 322. 12 None None

This is especially disturbing considering that the entity’s annual report recently released by the Auditor General found R1 billion in fruitless and wasteful expenditure. PRASA’s net loss for the previous financial year was R925 million.

It is clear that PRASA is in shambles and is plagued by scandal after scandal. The DA will formally write to the Minister of Transport, Blade Nzimande, asking why he has not done anything about this situation. It’s clear that these board members are blatantly ignoring their responsibilities and the Minister is protecting them by not acting.

The DA demands that the Minister explain how more than R3 million was wasted on the over payment of PRASA board members’ remuneration and why no plan was made to ensure that this money is repaid.

Failing ANC’s R100 billion irregular, fruitless and wasteful expenditure could fund job-seekers

The total balance of irregular, fruitless and wasteful expenditure by ANC national departments and state entities has increased to R100.9 billion.

This is a staggering sum of money. To put it in perspective, the R100.9 billion that was wasted would be enough to provide a jobseeker grant of R875 a month to every single unemployed person. Or a once-off cash grant of R10 500 for each unemployed person in the country. That is not to say the money could or should be used for these purposes. But it does put in perspective the scale of the loss, to consider how this sum could have improved the lives of all 10 million unemployed people.

The R4.1 billion that was lost to fruitless and wasteful expenditure in 2017/8 is enough to fund the salaries of over 22 000 police officers or 21 000 nurses.

It should be a national scandal that wanton waste on this scale has been allowed to take place by this failed ANC government.

Earlier this month, the DA analysed the annual reports of national departments and selected entities that had been tabled in Parliament. This revealed irregular expenditure of R72.6 billion and fruitless and wasteful expenditure of another R3 billion. However, serial mismanagement offenders SAA, SA Express and Denel had not tabled their reports at the time. The DA cautioned that the total was likely to increase substantially.

Prasa has now tabled their annual report, and the financial results are truly shocking:

  • Irregular expenditure: R24.2 billion
  • Fruitless and wasteful expenditure: R1 billion
  • Net loss for the year: R925 million

The Auditor-General (A-G) issued the entity with a qualified audit opinion, due to the large amount of dodgy spending, and the unclear accounting of passenger fares. Despite spending all this money, the entity achieved only 21% of its performance targets.

Prasa also joins the list of departments and entities that the A-G has expressed serious uncertainty over their ability to remain a going concern. There are now eight entities and one department at risk of financial collapse, in addition to the commercially insolvent SABC.

There is no excuse for this massive maladministration, particularly in fruitless and wasteful spending – this money is spent with absolutely no gain for the public. The ANC continues to pour vast sums of money down the drain at State-Owned Enterprises (SOEs).

Prasa’s results are a slap in the face to all those commuters who queue for hours attempting to catch trains that never arrive. With fuel prices sky-rocketing and 9.6 million unemployed, the neglect of the train system that provides vital links to jobs clearly shows that the ANC does not care about the daily struggles of South Africans.

The DA has shown that whenever we take over failing ANC governments, we clean up the administration and improve service delivery. South Africans have an opportunity in 2019 to choose a party that stands for One South Africa for All – not just the cronies of the ANC elite.

Metrorail is letting the people of the city down – urgent intervention needed

This morning at 6am Cape Town Mayor-elect, Dan Plato, together with City of Cape Town Mayoral Committee Member of Social Services and Safety and Security, JP Smith, and the DA’s Team One SA Spokesperson on Crime, John Steenhuisen MP met at Mitchells Plain train station to catch a train from there to Cape Town to inspect the safety conditions in the run-up to the City, Prasa and the Western Cape Government’s deployment of additional safety officers on the trains.

However, almost an hour later, no train had arrived and the leaders engaged with commuters about what they have to endure on a daily basis before they headed back to Cape Town by car.
  

Mitchells Plain train station has become a “ghost station”; Hundred of commuters queue to take a taxi after the train once again did not arrive.

It is clear that the management of Metrorail has reached a point of no return.

It is ludicrous that on a Monday morning, there was no train travelling from this densely-populated area and people had to desperately make use of alternative, more expensive transport to get to their places of work.

Plato said: “Today, I witnessed first-hand the frustrations, commuters have to endure on a daily basis. Commuters has completely lost faith in the management of Metrorail due to trains not arriving on time or simply not arriving at all – as was the case this morning. The Mitchells Plain station, like many other train stations in and around the Cape Town metro region has become “ghost stations” which in turn is a strain on the effectiveness of service delivery in the City of Cape Town.”

Listen to soundbite here.

Commuters no longer rely on Metrorail to get them from home to work and back. The failure of Metrorail to ensure trains arriving on time, has led to commuters having to resort to alternative transport to get to work and back. Many train commuters have to use taxis or busses now to get to work, which has costs implications on train commuters of R250 or more on a monthly basis. This is simply unaffordable for most South Africans.

Watch a video of regular commuter, Rushqah Davis, sharing her daily frustration with the train system here.

With regard to the failing management of safety and security at Metrorail, we again saw last week, with the burning of trains at the Cape Town Station, the need for intervention to take control of this system. The continued arson attacks on our transport system has had a massive economic impact not only Metrorail, but also on train commuters.

John Steenhuisen and JP Smith engaging with commuters.

The people that continue to suffer are however ordinary South Africans. Rail remains the only truly affordable transportation in the era of record fuel prices. Yet the system has been brought to its knees by widespread arson attacks and lack of accountability from the national government. Until the rot is sorted out at the top, commuters in and around Cape Town will continue to suffer due to a lack of action on the part of Minister Nzimande.

Only the DA-led City of Cape Town can sort out the mess at Metrorail created by the failing ANC national government.

PRASA Board members must be held to account for bringing rail services to its knees

The below statement follows the laying of charges of fraud and corruption against PRASA Board by the DA Shadow Minister of Transport, Manny de Freitas MP, and the DA Shadow Minister of Police, Zakhele Mbhele MP.

Please find attached an English soundbite by Mr De Freitas and in IsiZulu by Mr Mbhele.

View pictures here, here, and here.

Today, the Democratic Alliance laid charges of maladministration, fraud and corruption against Passenger Rail Agency of South Africa’s board (PRASA) in terms of the Section 50, 51 and 55 of the Public Finance Management Act (PFMA) and Section 34 the Prevention and Combatting of Corrupt Activities Act (PRECCA).

The charges are based on a draft Auditor-General report, leaked to the DA, which details shocking financial mismanagement and possible breaches of the PFMA and PRECCA at PRASA.

PRASA has failed to table last year’s 2016/17 Annual Report which is now 318 Days overdue and this report in the DA’s possession shows why they have been reluctant to do so. The report revealed that:

  • PRASA systems are inadequate to identify irregular and fruitless and wasteful expenditure;
  • Tender irregularities continue, and tenders do not comply with respective laws, regulations and are not transparent. All tenders audited by the AG had irregularities related to the method of selection of a service provider and all the tenders had questionable bid processes; and
  • There are major issues with remuneration of PRASA employees. From the report, it is clear that some executives received remuneration illegally or incorrectly.

The DA hopes the South African Police Services (SAPS) will prioritise these charges to ensure that all those responsible for our failing railway system are investigated and prosecuted to the fullest extent of the law.

These board members presided over a complete collapse in governance at the entity which has affected quality of services and efficient running of the public transport system.

With the ever-increasing fuel prices, trains remain the cheapest mode of transport for South Africans and it’s vital that the backbone of South Africa’s public transport network gets back on track.

The DA has a rail plan that will create a safe and well-managed railway system which put commuters first and will ensure job security. The plan is based on four aspects:

  1. Stabilising and modernising the current rail system –  Focus on upgrading the current signal system to phase out the manual signal to prevent further crashes and derailment and re-establish a dedicated rail police unit to provide security on our rail system.
  2. Merge Transnet and PRASA under the Department of Transport – All rail-related passenger and freight services should become the direct responsibility of the Minister of Transport, to streamline decision making and improve planning and integration.
  3. Ceding control of Metrorail services to Metros – Metropolitan governments should take over Metrorail functions gradually which will ensure integrated public transportation systems and better governance.
  4. Diversifying Ownership – While the state should retain ownership of the infrastructure, the DA calls for the gradual privatisation of some railway operations. This will increase competition and choice for transportation in the rail sector.

The DA is committed to freeing South Africans from the ANC’s broken promises and continued looting. Commuters must be provided with quality services they rightly deserve so that they are able to keep and look for jobs.

In 2019, South Africans have the choice to vote in a national government which puts the people first, speeds up the delivery of services and cuts corruption.

DA to lay criminal charges against the PRASA Board following leaked AG report detailing leadership and financial crisis

The following remarks were delivered by DA Shadow Minister of Transport, Manny de Freitas MP and DA Shadow Minister of Police, Zakhele Mbhele MP, at a press conference in Cape Town today. The draft Auditor-General report can be accessed here.

Cities and economies flourish when well-functioning public transportation systems are in place with rail being the backbone of such a system. A reliable and safe commuter rail is crucial to ensuring that people can get to work on time, to allow people to look for jobs and so that residents can access various services and amenities. With the rising cost of living, rail is now the most affordable way to travel.

However, through years of systematic corruption and mismanagement, the Passenger Rail Agency of South Africa (PRASA), which is responsible for delivering passenger rail services, has our rail system on its knees.

The DA has travelled the country to investigate the current conditions on our railways on our #RailSafety tour that included visits to the Western Cape, Gauteng and KZN. Across the board, South Africans are fed up with the current dangerous conditions they are forced to endure by the failing ANC government.

Every day, commuters are forced to deal with chronic and lengthy delays due to ailing infrastructure and vandalism. Just this morning we have seen reports of yet another train set on fire here in Cape Town. This is the seventh train fire in the city in the last few months alone.

Commuters are also unsafe due to a severe lack of safety officials and police to patrol train stations. This allows crime and vandalism to thrive, further compromising the safety of commuters and the stability of the system.

PRASA has been without a full-time Board for more than a year since the end of July 2017, and as the entity lurches from one crisis to another, the response from PRASA and the successive Transport Ministers has been the continued cover up corruption.

A laundry list of serious allegations was laid bare in the then Public Protector’s 2015 “Derailed Report” that described how top officials at PRASA handed out contracts to friends and allies. The real cause of the breakdown of PRASA has been systematic looting, seemingly to pay out ANC cronies.

The Public Protector’s report instructed the National Treasury to investigate these findings. These reports were finalised in December 2016 and were eventually leaked to the public last year.

However, 3 years since the Derailed Report, and after billions have been stolen from the entity, no one has been charged or arrested. In the light the lack of political will by the ANC to ensure accountability for those who have brought PRASA to its knees, the DA laid charges against those implicated.

Leaked Auditor General report on PRASA reveals the total institutional breakdown

One of the key instruments of accountability and transparency is the yearly Annual Report that all entities must provide to Parliament by 30 September each year, as required by the Public Finance Management Act of 1999. This document includes the Auditor General’s Recommendation on the financial affairs of a public entity.

PRASA has not yet submitted last year’s 2016/17 Annual Report which is now 318 Days overdue.

It is now in the public interest to reveal what is contained in this report. The main findings of the report in the DA’s possession are as follows:

Financial viability is in question as the entity has incurred massive losses

The report reveals that PRASA is on the verge of financial collapse that is directly linked to massive losses last year. The report states that “The entity and group have incurred a loss of R1,7 billion and R1,3 billion respectively for the year ended 31 March 2017.” This resulted in a “the accumulated loss as at 31 March 2017 is R4,4 billion for the entity and R4,5 billion at the group level.

The AG comments that “The declining financial performance is further evident in the cash outflows from operations of R2,3 billion and R2,4 billion for entity and group respectively” and “It is further noted that there was no disclosure in the annual financial statements highlighting the financial sustainability challenges faced by the entity and group.”

PRASA systems are inadequate to identify irregular and fruitless and wasteful expenditure

The AG’s report indicates that “During the duration of the audit and prior to submission of the annual financial statements a number of findings identifying irregular and fruitless and wasteful expenditure were identified”.

The AG comments that “As the entity is currently undergoing a number of investigations relating to supply chain management matters and as confirmed by the Acting Group CFO and Acting  Group CEO on 4 December 2017, the PRASA group did not have an adequate system for identifying and disclosing all irregular and fruitless and wasteful expenditure, there were no satisfactory alternative procedures that I could perform to obtain reasonable assurance that all irregular and fruitless and wasteful expenditure had been properly recorded in notes 41 and 42 to the separate and consolidated financial statements”.

PRASA leadership has clearly learned nothing from the “Derailed Report” with irregularities able to continue due to lack of systems of accountability and transparency. There appears to be little or no political will to address this matter.

Tender irregularities continue: tenders do not comply with respective laws and regulations, are not transparent.

The AG took a sample of tenders from PRASA in the financial year 2016/7 which revealed critical issues of the 36 tenders analysed by the AG:

  • All had irregularities related to the method of selection of a service provider and all the tenders had questionable bid processes.
  • In 92% of the cases, internal processes or regulations, as well as relative regulation, law or legislation, were not adhered to.
  • In 33% of the cases, tender requirements were ignored and in 39% of the cases, tender amounts exceeded permissible amounts.
  • In five tenders, the highest scoring bidder did not receive the tender and in five cases, service providers were appointed without contracts.
  • In two cases, the incorrect service providers were appointed.

There are discrepancies between information supplied and information obtained by the AG. The AG noted the lack of consequence management for persons who are liable for irregular and fruitless and wasteful expenditure incurred. This sample and the lack of consequence management speaks to serious mismanagement and continued misappropriation of funds at the entity.

Major issues with remuneration of PRASA employees

From the report, it is clear that some executives received remuneration illegally or incorrectly. One such case is the Intersite and Autopax Company Secretary, Mr Lindikaya Zide who took the responsibility of Company Secretary at Intersite and Autopax and continued to receive an allowance when he was no longer responsible for these positions. This amounted to approximately R250 000 of wasteful and illegal expenditure.

Additionally, declaration of interests were not submitted by suppliers, members of accounting authorities and employees. Twenty-two members are listed as not disclosing their interests and connections to suppliers including the previous Chairman of the Board, Popo Molefe. This is a contravention of the Section 50 PFMA.

The report also mentions although there was a request to pay the AGCEO an annual salary of approximately R6 million the Board could not provide proof of approval for this salary. Without such proof, Mr Letsoalo should not be entitled to this salary and should, therefore pay it back.

In order to get PRASA back on track and to ensure that South Africans have access to a safe and reliable rail system, the DA will take the following steps:

DA to lay further criminal charges against PRASA officials 

As indicated in the AG report the majority of the tenders went “through a system which is not fair, equitable, transparent, competitive and cost-effective as required by Section 217 of the Constitution of the Republic of South Africa and Section 51(1) of the Public Finance Management Act (PFMA), as the appointment was not done through a competitive process.”

According to the Section 86 of the PFMA, an accounting authority is guilty of an offence and liable on conviction to a fine, or to imprisonment for a period not exceeding five years, if that accounting authority wilfully or in a grossly negligent way fails to comply with a provision of section 50, 51 or 55.

Based on the information in this report the DA will lay charges against those implicated in terms of the PFMA which in this case is the is PRASA’s board who serves as the entity’s accounting officer.

PRASA must release Annual Report immediately

PRASA must immediately release the 2016/7 Annual Report to Parliament so the full context and performance of the entity can be assessed as legislated. The DA will write to the Minister of Transport, Blade Nzimande, to ensure the urgent release of the report to the public. The Treasury reports commissioned by the Public Protector should be immediately released including an action plan by the Minister and PRASA executives when those implicated will be face consequences for their actions.

Parliamentary Inquiry into PRASA must commence immediately

Parliament, through the Portfolio Committee on Transport, must immediately begin its Inquiry into PRASA as PRASA and the Ministry has no appetite. This process is crucial to ensure that the rot in PRASA is removed. The Portfolio Committee has already agreed to this Inquiry and therefore, the DA will write to the Chairperson of the Committee, Dikeledi Magadzi, to urgently confirm the dates.

The DA has designed a rail plan that will create a safe and well-managed railway system which put commuters first and will ensure job security. The plan is based on four aspects:

  1. Stabilising and modernising the current rail system –  An urgent update is required to ascertain the progress on upgrading the current signal system to phase out the manual signal to prevent further crashes and derailment.
  2. Merge Transnet and PRASA under the Department of Transport – This means all rail-related passenger and freight services should become the direct responsibility of the Minister of Transport. This will streamline decision making and improve planning and integration.
  3. Ceding control of Metrorail services to Metros – This process will see Metropolitan governments take over Metrorail functions gradually which will ensure integrated public transportation systems and better governance. The Western Cape Government and the City have already committed additional security personal thus ensuring increased protection of commuters and infrastructure at risk.
  4. Diversifying Ownership – While the state should retain ownership of the infrastructure, the DA calls for the gradual privatisation of some railway operations. This will increase competition and choice for transportation in the rail sector.

The DA’s plan is the only alternative to the ANC’s broken public railway transportation system. Our rail plan will put commuters first and ensure job security because it will be safe, efficient and corruption free.

In 2019, South African have the opportunity to choose a government that is committed to empowering South African public transport commuters and ensuring that the rail transportation system puts the safety of South Africans first, ensures that South Africans keep their jobs and are able to use trains to find work.