Masangwanyi must appoint PRASA board in 10 days – Manny de Freitas

DA MP says there is currently no valid accounting authority at rail agency

Minister Masangwanyi must appoint PRASA board in 10 days

21 September 2017

The DA will write to the Minister of Transport, Joe Masangwanyi, to demand that he appoint a full Board for the Passenger Rail Agency of South Africa (PRASA) within 10 days and will also seek assurances that a moratorium on all new contracts be put in place until such time as the new Board is appointed.

The term of the previous PRASA Board ended on the 31st of July, almost two months ago. This essentially mean that no accounting authority has been in place, as required by the Public Finance Management Act (PFMA). While the PFMA allows for an acting CEO to act as an accounting authority, PRASA has been unable to confirm the role played by its acting CEO to approve the agreement.

Despite this, PRASA has gone ahead and approved a R57bn loan agreement with the Export and Import Bank of China to finance the Moloto Rail Development Corridor, which now may be unlawful.

The agreement is yet another example of the culture of impunity that has seeped into every corner of the state-owned entity, which has allowed state capture functionaries free reign. The rule book has been thrown out of the window to allow corrupt individuals to raid the public purse and enrich themselves at the expense of the poor.

While the Minister has evidently shown that PRASA is not on his priority list, enough is enough. He must establish a Board, within ten days, as an essential first step towards restoring transparency and accountability at the parastatal.

Issued by Manny de Freitas, DA Shadow Minister of Transport , 21 September 2017, 21 September 2017