PRASA’s Legal Woes

by
1 min read
prasa legal woes

The Passenger Rail Agency of South Africa (PRASA) has been embroiled in a series of legal battles since early 2021, with the rail agency relying heavily on the services of the law firm De Swardt Myambo Hlahla Attorneys. However, concerns have been raised over PRASA’s procurement practices, with the National Treasury warning that the agency may have violated procurement regulations by using De Swardt, which is not on its legal panel.

The NECSA Panel

PRASA has been advised by the Auditor-General to use the legal panel of the South African Nuclear Energy Corporation (NECSA) since early 2020. However, PRASA claimed that the NECSA panel was “compromised” because it was introduced before the current board was appointed and had been “under the control” of Martha Ngoye, a whistleblower and suspended head of legal at PRASA. PRASA also stated that it did not have sufficient time to verify firms on the NECSA panel.

Newsletter

Stay Informed • Cape Town

Get breaking news, events, and local stories delivered to your inbox daily. All the news that matters in under 5 minutes.

Join 10,000+ readers
No spam, unsubscribe anytime

Request for Deviation

In February 2021, PRASA requested a deviation from normal procurement procedures to allow De Swardt to litigate on behalf of its board in cases against Ngoye, Tiro Holele, and Nkosinathi Khena. However, the National Treasury responded by stating that it was “not verifiable” for PRASA to claim that NECSA’s panel was compromised by Ngoye. The Treasury also stated that any award made to De Swardt must be listed on the e-tender portal, but no such award has been listed.

Continued Use of De Swardt

Despite the National Treasury’s response, De Swardt has continued to provide services to PRASA’s board, not just in the Ngoye, Khena, and Holele matter, but in a growing number of labour-related cases. PRASA’s board, led by Leonard Ramatlakane, issued a resolution authorising De Swardt to represent the rail agency in its challenge to the arbitration award issued to Martha Ngoye in February 2023.

Auditor-General’s Investigation

In October 2022, the Auditor-General began examining R33-million in irregular expenditure by PRASA for the use of law firms not on the agency’s legal panel, including the R17-million paid to De Swardt. PRASA spokesperson Andiswa Makanda declined to comment on the allegations. Five months later, there has been no response from PRASA to questions about De Swardt or the outcome of any investigation into its use.

Conclusion

PRASA’s use of De Swardt has raised concerns over transparency and accountability. The agency’s failure to comply with procurement regulations and use of firms not on its legal panel has resulted in irregular expenditure. The National Treasury’s warning to PRASA highlights the need for greater oversight and adherence to procurement regulations. The investigation by the Auditor-General underscores the importance of transparency and accountability in the use of public funds.

Tags:

You might be interested in

Zola Naidoo is a Cape Town journalist who chronicles the city’s shifting politics and the lived realities behind the headlines. A weekend trail-runner on Table Mountain’s lower contour paths, she still swops stories in her grandmother’s District Six kitchen every Sunday, grounding her reporting in the cadences of the Cape.

View all

Leave a Reply

Your email address will not be published.

nsri lifeguard
Previous Story

The National Sea Rescue Institute (NSRI) Lifeguards: A Glimpse into Their Daily Routine

landmark conviction gang members
Next Story

Landmark Conviction: Gang Members Sentenced to 705 Years in Prison

Latest from Blog

Community Recycling Educational Initiative

From Bottle to Breakthrough: How Three Cape Town Schools Turned Trash into a Movement

Three Cape Town schools started a cool recycling project called “From Bottle to Breakthrough.” They turned plastic trash into a big community effort, using fun digital scoreboards to show how much everyone collected. Kids and parents worked together, learning about recycling in class and even making money from their efforts. This awesome idea is now inspiring others, showing how old bottles can become new, useful things for everyone.

Digital Twin Western Cape

Western Cape’s €97 500 Digital Twin Spark: From Tallinn Code to Cape Town Concrete

{“summary”: “The Western Cape is building a \”digital twin\” of its public buildings and roads. This means creating a live, digital copy that uses sensors and data to predict problems and help with planning. It all started with a small grant of €97,500, showing how even a little money can kickstart big changes. This project will help the province manage its infrastructure better, making things last longer and run more smoothly.”}

Beauty standards Aging

The Quiet Calculus Behind a Familiar Face

Modern women are taking charge of their beauty and aging journey! They mix fancy treatments like Botox and lasers with good habits like sunscreen, healthy food, and chilling out. It’s all about feeling good and confident, not being ashamed of growing older. It’s like a secret math problem they solve to look and feel their best, often inspired by powerful women like Charlize Theron.

community impact generosity

A Karoo Christmas Unlike Any Other: How One Secret Donor Rewrote Aberdeen’s December Story

A kind stranger secretly paid off 260 laybys at a PEP store in Aberdeen, South Africa, just before Christmas. This amazing act freed families to collect their muchneeded items, from school clothes to baby blankets, bringing immense joy and relief to the small, struggling town. The secret donor’s generosity, totaling R132,500, turned a difficult December into a festive celebration for many, sparking a wave of happiness and inspiring local businesses.