How an ANC veteran’s firm took R1bn from Prasa
JOHANNESBURG — A massive procurement scandal has erupted at the Passenger Rail Agency of South Africa (Prasa) following revelations that a politically connected security group extracted over R1 billion through a controversial contracting arrangement. National Treasury is currently scrutinizing the deals, which involve a group allegedly led by ANC veteran and former Robben Island prisoner Paul Langa.
The investigation centers on Prasa’s decision in July 2021 to tap into the Airports Company of South Africa’s (Acsa) panel of security contractors. This “piggybacking” move allowed Reshebile Aviation & Protection Services (RAPS) and its sister company, Reshebile Aviation Solutions (Ras), to secure lucrative work. However, Treasury officials have indicated that the regulation permitting state entities to share contracts does not apply to either Acsa or Prasa, rendering the arrangement potentially unlawful.
Before its liquidation in March 2024, RAPS was billing the rail agency between R16 million and R18 million every month, totaling more than R550 million. Following the collapse of RAPS, Prasa reportedly shifted the security work to Ras without a formal procurement process or a service level agreement. Notably, Ras was not part of the original Acsa panel that formed the basis of the initial deal.
The situation is further complicated by a previous KwaZulu-Natal High Court ruling from six years ago. That judgment specifically set aside a similar deal involving Acsa and RAPS, declaring the practice unlawful. Despite this legal precedent, Prasa spokesperson Andiswa Makanda defended the agency’s actions. She maintained that Prasa had updated its supply chain management policy to allow for participation in contracts awarded by other state organs, claiming the agency followed Treasury advice.
Critics have raised alarms over the suitability of the arrangement, noting that procurement systems designed for high-end airport security were applied to the vastly different requirements of rail infrastructure protection. While Prasa claims the functions are comparable, the agency has declined to release the evaluation reports or scorecards that would justify the selection of these specific firms.
The controversy highlights ongoing concerns regarding the intersection of political influence and state procurement. With the Auditor-General expected to join the investigation, the focus remains on why Prasa ignored previous court rulings and Treasury warnings to funnel massive sums to a single, politically linked entity.
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