---
title: "The looting of Prasa and the terrible price SA has been forced to pay"
description: "When we talk about corruption in South Africa, it can often seem like an abstract concept. But to understand its real-life consequences, look no further than the collapse of South Africa’s train services."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "WATCH THE VIDEO"
author: "Rebecca Davis"
author_url: "https://www.dailymaverick.co.za/author/rebeccadavis-2-2/"
canonical_url: "https://www.dailymaverick.co.za/article/2024-05-03-the-looting-of-prasa-and-the-terrible-price-sa-has-been-forced-to-pay/"
published: "2024-05-03T10:39:43"
lang: "en-ZA"
word_count: 501
---

# The looting of Prasa and the terrible price SA has been forced to pay

> When we talk about corruption in South Africa, it can often seem like an abstract concept. But to understand its real-life consequences, look no further than the collapse of South Africa’s train services.

By Rebecca Davis · Published 3 May 2024, 12:39 SAST

## Key points
- The looting of Prasa and Transnet in South Africa has not only derailed the country's commuter train service and cargo transportation system, but has also paved the way for more traffic chaos, potholes, and fatal crashes on the roads, illustrating how corruption doesn't just drain coffers but destroys lives and infrastructure.
- Prasa looting under CEO Lucky Montana led to only 13 out of 216 contracts being legitimate, totaling R15-billion in value, resulting in the destruction of South Africa's commuter train service.
- The collapse of Prasa has forced an additional 1 million passengers onto the roads daily, contributing to the traffic congestion in Cape Town.
- Transnet corruption, highlighted by the Guptaleaks investigations, has severely impacted the ability of local businesses to transport goods via rail, leading to increased truck transportation.
- The collapse of Prasa and Transnet has not only affected transportation but has also contributed to road infrastructure deterioration and increased fatal crashes involving trucks in South Africa.

## Content

[YouTube video: "YouTube video"](https://www.youtube.com/watch?v=UppC5SRlAC8)

The looting of Prasa, South Africa’s passenger rail service, began around 2012 under the leadership of CEO Lucky Montana. If you want to understand the scale of the graft, a Treasury investigation into 216 contracts awarded by Prasa between 2012 and 2015 found that only 13 were legit. The total value of the contracts was around R15-billion.

The result of this corruption has been the destruction of South Africa’s commuter train service. In 2010, rail passengers were making over 500 million train journeys a year. By 2022, this figure had fallen to 19 million. In Cape Town, the [most significant Metrorail line servicing underprivileged communities](https://www.dailymaverick.co.za/article/2024-02-20-revitalisation-of-cts-metrorail-central-line-on-track-with-potential-for-greater-commuter-access/) including Khayelitsha and Mitchell’s Plain, has effectively not been operational since 2019.

According to estimates, this has forced an additional 1 million passengers onto the roads daily, whereas previously they would have used trains. So if you are a Capetonian frustrated by the terrible traffic in the city in recent years, you can trace that back pretty directly to the looting of Prasa.

**Read more in Daily Maverick:**[How Prasa was looted and left for scrap](https://www.dailymaverick.co.za/article/2021-04-13-how-prasa-was-looted-and-left-for-scrap/)

Now let’s talk about Transnet, the government’s custodian of ports, rail and pipelines. Transnet is in charge of the trains that transport cargo rather than humans.

As revealed by the [Guptaleaks investigations](https://www.dailymaverick.co.za/article/2022-06-01-the-guptaleaks-five-years-later/), the scale of Transnet corruption was the biggest since the Arms Deal in the 1990s. To give just one example, a contract was signed with the [Chinese Railway Rolling Stock Corporation](https://www.dailymaverick.co.za/article/2021-03-30-the-chinese-railway-rolling-stock-corporation-china-inc-boards-the-state-capture-train/) in 2014 to buy just over 1,000 locomotives for the price of R54.4 billion, with almost a quarter of the value of this going to Gupta companies.

Of the trains which have arrived so far from this contract, they have been late and pretty much useless. This in combination with the full picture of Transnet corruption, and a spiralling issue with criminal syndicates stealing cables, has meant that the ability of local businesses to transport their goods via rail has been drastically reduced.

**Read more in Daily Maverick:**[Transnet turnaround looks promising, but set to be a long haul](https://www.dailymaverick.co.za/article/2024-04-28-transnet-turnaround-looks-promising-but-set-to-be-a-long-haul/)

How are those goods being transported now? Via trucks. Which is presenting huge problems for roads and for traffic. In fact, the heavy volume of trucks on the roads is tearing up road infrastructure. This is the reason for many of our potholes, because the roads simply cannot take this kind of pounding. Trucks also account for almost 10% of fatal crashes on South African roads these days, according to a recent study from the Road Management Traffic Corporation.

Together, the collapse of Prasa and Transnet have made all our lives more difficult in multiple ways. That’s the thing about corruption. It isn’t just an abstract concept. It brings down nations. And this is why we need civil society and we need journalism. To expose corruption and to put pressure on those in power to hold the corrupt accountable. **DM**

**Read more in Daily Maverick:**[State of the Media news hub](https://www.dailymaverick.co.za/news-media-industry-south-africa/)

[Media on Daily Maverick: "Shein/Temu Q"](https://www.dailymaverick.co.za/article/2024-05-03-the-looting-of-prasa-and-the-terrible-price-sa-has-been-forced-to-pay/)