The State Capture Commission has heard that the board of the Passenger Rail Agency of South Africa (Prasa) went to great lengths to ensure that the company, Siyagena, linked to businessman Roy Moodley, got a contract worth billions of rands.
Prasa Legal Risk and Compliance Group Executive Martha Ngoye told the commission of irregularities and the forging of the signature of an executive, Tara Ngubane, when phase one of the contract was drafted.
In 2015, the Public Protector found Prasa’s payments to Siyagena constituted maladministration and misconduct. Ngoye said former Prasa Chief Executive Officer, Lucky Montana had played pivotal role in the awarding of the contract.
“Chair when you look at how the matter unfolded and how the payments were made, monies were just coming out of Prasa to pay this, so in relation to his first phase of the project, Prasa had paid a substantial amount of money out of its own coffers to Siyangena and so when you look at it at the end of the day this fronting model benefits Prasa because it still paid.”
Prasa Legal Risk and Compliance Group Executive Martha Ngoye testifies at the State Capture Commission:
Last week, the Commission heard evidence from Prasa’s former board chairperson Popo Molefe. He said he was left shaken after meeting with former president Jacob Zuma who tried to reverse the Prasa board’s decision to accept former Chief Executive Officer Lucky Montana’s resignation.
Molefe also explained the condition Prasa was in after the Auditor-General found irregular expenditure worth more than R500 million.
“What was quite apparent in that meeting and was of great concern was that the head of the state the president and the president of the governing party which are the custodians of all the governing bodies including the constitution was now directly attempting to interfere with matters of the board of directors of Prasa, that was really of great concern.”