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News24 reports that the Passenger Rail Agency of SA (Prasa) awarded contractors two R18-billion train-signalling tenders in two months, despite the joint ventures concerned failing to meet a series of crucial requirements.
In May and April 2023, Prasa awarded the Macre joint venture (JV) and CRIG Maziya JV two contracts worth R5.5 billion and R11.5 billion, respectively, to install train-signalling equipment. Documents, including contracts, memorandums, tender documents, and emails, show that both joint ventures failed to meet Prasa's minimum requirements for bidders to be considered for the two projects. But, while Macre and CRIG Maziya appear to be two different companies at face value, they are not as they are one and the same entity. Parties to both joint ventures include the same companies, namely Maziya General Services as lead partner, the China Railway International Group (CRIG) and the China Railway Wuhan Electrification Group (CRWE). Both CRIG and CRWE are owned by the China Railway Group, a construction conglomerate owned by the Chinese government. Macre's R5.5-billion contract was for the installation of train-signalling equipment in Gauteng, KwaZulu-Natal and the Western Cape. CRIG Maziya's was used to set up similar equipment in KwaZulu-Natal. Macre and CRIG Maziya failed to submit bid bonds worth 10% of the total value of their contracts, which alone should have instantly disqualified both companies. The two entities were not registered as joint ventures on the National Treasury's central supplier database (CSD). Neither were tax compliant, a crucial requirement. According to a dossier authored by a whistleblower, Prasa's executives allegedly unlawfully, wrongfully, and deliberately paid the R2.6 billion to Maziya General Services, an entity not contracted to Prasa. Prasa spokesperson Andiswa Makanda said the parastatal took the whistleblower's report seriously and would appoint an independent investigation to look into the allegations.
- Read the extensive report in the above regard by Sipho Masondo at News24 (subscription or trial registration required)
- Read too, Allegations of fraudulent payments amounting to billions at Prasa, at GroundUp
Get other news reports at the SA Labour News home page