The DA in the Western Cape has condemned Prasa's decision to grant a R7.5-billion maintenance and refurbishment tender to companies that allegedly lacked the capacity, resources, or equipment to do the job.
This was in reaction to the findings of an AmaBhungane report alleging that Prasa selectively disregarded companies that completely complied with the requirements for managing the project and instead gave the contract to firms that did not meet the criteria.
Companies competing for the multibillion-rand contract include CTE Technologies, YNF Engineering, TMH Africa, Armature Technology, and Karabo-Nhlamolo Projects Cooperative (KNPC) – four of which are reportedly inexperienced in refurbishing and building trains. According to the report, some of these companies had allegedly either been involved in fraud and corruption, or were financially bankrupt before receiving the tender.
Some of the firms allegedly also used a discredited bidder, Transnet, because they lacked the necessary equipment. They turned to Transnet to rent out their facilities, which as a sister company to Prasa, could have provided these services at cost, as they have done in the past.
“Prasa is being extremely irresponsible for giving contracts to companies who are unable to do the job needed to refurbish trains. The reason Prasa is in its dire situation is that the entity is not just incompetent but also awards contracts to incompetent bidders,” DA Western Cape spokesperson on transport, Ricardo Mackenzie, said.
“Out of the more than 4 000 coaches in Prasa's fleet, only 800 are currently in use. About 80% of the surviving coaches are not in use because they either require minor or major repairs and improvements, or they have to be disposed of. While these figures are not surprising, they are totally unacceptable,” MacKenzie added.
“The state of rail in this country is already in shambles; the national government should be turning to the private sector not only to help save the rail, but to prevent it from deteriorating further,” he added.
