Testimony related to the Passenger Rail Agency of South Africa (Prasa) at the Zondo Commission of Inquiry into Allegations of State Capture has dealt with inflating the values of tenders, lack of supply chain management mechanisms and outsiders getting involved in the entity’s business. While testimony was put on hold after the entity’s head of Legal, Risk and Compliance, Martha Ngoye, gave evidence, there are six vital questions that need to be asked. 

1. What have we learnt from the testimony? 

Influential businessmen and friends of former CEO Lucky Montana got contracts and tenders from Prasa. While Montana has left Prasa, there is still a backlog of irregular contracts that Montana personally interacted with and directed at the rail agency. Because of this, the entity is locked in ongoing legal battles with contractors Siyangena Technologies and Siyaya, both of whom are linked to known friends of Montana. 

We learnt that Montana blocked Ngoye and board chair Popo Molefe,  from accessing and scrutinising tenders and contracts. Testimony from Montana and Ngoye painted a picture of Montana as someone who put the needs of his business partners ahead of his position as CEO of South Africa’s rail agency. 

2. Why did the testimony end? 

Testimony was brought to a halt after Ngoye concluded her evidence. Advocate Vas Soni, SC, told Deputy Chief Justice Raymond Zondo that there were originally going to be two phases of testimony-giving, which would allow for additional responses from those who gave testimony, more witnesses to be called and more investigations to take place. The break in testimony was due to last for two or three weeks. However, with South Africa going into lockdown for 21 days between 21 March and 16 April, it is unclear when testimony will resume. 

3. Who is still expected to testify? 

Thus far, Molefe, Tiro Holele (Autopax CEO),  Jacob Rakgoathe (general manager, Group Compliance) and Ngoye have all testified. 

Still to testify are #UniteBehind’s Zackie Achmat and former interim board chairperson Khanyisile Kweyama, who is expected to testify about her interim board that was dissolved at the end of 2019 by Transport Minister Fikile Mbalula, who also fired acting group CEO Nkosinathi Sishi. Mbalula then appointed an administrator, Bongisizwe Mpondo. This, however, has been taken on legal review by #UniteBehind. 

Mbalula attacked the commission, stating that he had not been informed that he was implicated by Kweyama’s “lies and slander”. Advocate Soni had indicated that those implicated by witness testimony were informed beforehand, but at this stage, it is unclear if Montana and his business associates, Makhensa Mabunda and Roy Moodley, will respond to various allegations made about them. 

4 What does the evidence highlight? 

Prasa has been described as “a mess”, “broken”, and an “ATM”. At one point, Zondo labelled it “bizarre” that Ngoye was blocked from viewing and overseeing certain contracts overseen by Montana, including the infamous Swifambo contract. 

All those who testified highlighted a battle between, on the one side, Ngoye, Molefe and many others who want the state-owned entity to run smoothly, and on the other side, Montana and his associates who funnelled money out of the rail agency and into their own pockets or into controlling stakes in an olive and wine farm in Robertson, as laid out in an investigation by Scorpio, Daily Maverick’s investigative unit. 

Additionally, the evidence by Molefe suggests the need for law enforcement agencies and oversight bodies such as Parliament’s transport committee to monitor and intervene when things go haywire. Molefe said the board was willing to hand over documents to the Hawks to investigate irregularities at the entity, but nothing came of that. In Parliament at the time, speaking about State Capture was met with hostility, Molefe said. 

5 What is the current state of Prasa? 

In 2019, two big changes were announced at the entity –  the appointments of a group head of human capital (Thandeka Ndilikazi Mabija) and a chief procurement officer (Keabetswe Mpane) – positions the entity did not previously have. Additionally, Japhtalina Lesibana Fosu was appointed as chief financial officer, a position the entity had not filled since 2014. 

It appears that things are slowly taking shape at the entity under Transport Minister Mbalula. His ambition is to stop the broken, bleeding entity, as stated in numerous press briefings. A War Room was put in place to kick-start the operational side of fixing the entity and Mbalula has stated the entity is going to go through a clean-up operation. In March, the entity placed 12 officials on suspension, but Prasa spokesperson Makhosini Mgitywa did not want to tell Daily Maverick who the suspended officials were or on what charges they were suspended. 

6 What next at Zondo for Prasa-related testimony? 

What should be next at the entity is the explanation of how things have changed at Prasa. Is there still a culture of fear among employees? Is Prasa managing to recoup the losses?  Most important, after the massive upheavals and changes in leadership, is Prasa coming closer to stability? DM