The Passenger Rail Agency of South Africa has taken decisive action following the discovery of irregularities in contracts linked to its rolling stock overhaul programme.
An independent forensic investigation conducted by Webber Wentzel examined seven contracts awarded in 2022 under the General Overhaul Programme.
The initiative was introduced to extend the lifespan of ageing trains while the agency transitions to new units supplied by the Gibela Rail Transport Consortium.
The probe was launched in April 2024 after a contractor raised concerns about irregularities in how the programme was managed.
PRASA opted to appoint external investigators, with preliminary findings presented to leadership in November 2024.
Following the investigation, the agency has frozen payments to contractors implicated in overcharging and has begun terminating contracts where serious breaches were identified.
Some contractors have been formally notified, while internal financial controls within the programme have been strengthened.
Initial findings point to significant overcharging, although the full extent is still being determined.
PRASA has also initiated steps to recover funds, instructing legal counsel to pursue civil claims against those involved.
Disciplinary action has been taken against implicated employees, with charges including fraud, corruption and financial misconduct.
Some individuals have resigned during the process, but the agency stressed that this does not shield them from accountability.
Cases have been referred to the Directorate for Priority Crime Investigation for potential criminal investigation.
PRASA said the ongoing process forms part of broader efforts to strengthen governance and ensure accountability as it works to modernise South Africa’s rail network.
Civil, disciplinary and criminal proceedings are expected to continue as authorities seek to recover losses and hold those responsible to account.
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