Prasa scandal: AfriBusiness considering legal action against directors

30 August 2016

AfriBusiness will consult their legal team this week to investigate possible legal action against several company directors who were involved in the so-called Passenger Rail Agency of South Africa (Prasa) scandal.

This follows after Popo Molefe, Chairperson of the Prasa Board, alleged in an affidavit that the ANC had received great financial benefit from the controversial locomotive transaction by this agency. Billions were spent on the Afro 4000 locomotives, which were built in Spain but cannot be used on South Africa’s railway network. The governing party allegedly received R80 million.

According to Stefan Pieterse, AfriBusiness spokesperson, corruption in South Africa can never be stopped until the guilty parties are personally held liable and have to repay the misspent money.

Pieterse further said that illegally awarded tenders and black economic empowerment (BEE) were plundering the treasury and promoting corruption.

Earlier this year, AfriBusiness prevented a payment of R950 million to PEU Capital for the controversial smart meter contract via a court interdict. Pieterse further said that AfriBusiness would not hesitate to expose tender tampering and corruption and act where necessary.

“AfriBusiness supports equal opportunities for all, but when taxpayers’ money is being wasted, urgent intervention is required. Money that is spent irregularly can be much better spent on job creation and infrastructure. To us as a business rights watchdog it is important to protect the rights of our members – even if it means we have to approach the court,” Pieterse said.

Issued by Stefan Pieterse, Spokesperson, AfriBusiness, 30 August 2016