Court sets aside Prasa’s contract for new locomotives

In a win for Prasa, the court has found that “corruption would triumph” if the tender was not set aside.

FILE: Prasa’s head office next to Park Station at Umjantshi House on Wolmarans Street, Braamfontein. Picture: Google Earth.

CAPE TOWN – The Passenger Rail Agency of South Africa (Prasa)‘s controversial contract for new locomotives has been set aside by the High Court in Johannesburg.

Under the leadership of Board Chairperson Popo Molefe, the rail agency went to court to nullify the contract with Swifambo Rail Leasing, pitting Molefe against Prasa’s former CEO Lucky Montana.

The contract which was signed in 2013, amounted to at least R3.5 billion, but it turned out the Spanish-built trains were not suitable for the local network.

Molefe said the new trains were “too tall” for the rail network.

The rail agency’s board is currently studying Monday’s judgment.

In a win for Prasa, the court has found that “corruption would triumph” if the tender was not set aside.

Molefe claimed in court papers around R80 million from the deal was destined for African National Congress coffers.

But the ruling party denied the allegation.

In late 2015, former Public Protector Thuli Madonsela released a report into large-scale maladministration and tender irregularities at Prasa.

Read the full judgment below:

PRASA Judgment by Primedia Broadcasting on Scribd

Source: EWN

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