DA requests A-G investigation of Prasa's R3.5 billion rail deal
The DA will request that the Auditor-General, Terrence Nombembe, investigate the Passenger Rail Agency of South Africa's (Prasa's) R3.5 billion locomotives deal.
According to media reports last year, Swifambo Rail Leasing was awarded a contract to provide 88 dual diesel-electric locomotives to Prasa for the Shosholoza Meyl's long-distance services.
Swifambo Rail Leasing will be acquiring these locomotives from Vossloh, a Spanish company, at R50 million per locomotive. Local train supplier Transnet Engineering's going rate for locomotives is R25 million.
Prasa's acquisition of locomotives from Vossloh, a foreign company, through Swifambo, is a violation of the Preferential Procurement Policy Framework (PPPF) and Treasury regulations on rail rolling stock which dictates that at least 55% of diesel locomotives and 60% of electric locomotives needs to be produced locally.
This also means that thousands of job opportunities that could have been awarded locally are now being shifted overseas.