South Africa: EFF Statement On the Procurement of Defective Locomotives By Prasa

press release

The Economic Freedom Fighters condemns the ANC government for the reckless use of taxpayers funds in the procurement of defective 70 locomotives by Passenger Rail Agency of South Africa (PRASA) from the Spanish manufacturer Vossloh España at a cost of R3.5 billion. The Minister of Transport, Dipuo Peters, welcomed the arrival of 13 locomotives with pomp and ceremony which were manufactured at cost of R600 million in spite warnings from engineering experts that these locomotives are not suitable for South African railway tracks. The Minister has previously announced that government intends to spend R56 billion to procure a further 600 locomotives as part of the modernisation of the rail transport.

The EFF is concerned and disturbed by serious disregard of prudent management of taxpayers funds by the Department of Transport and its related entities like PRASA. We have reason to suspect that bribes may have been exchanged in the cheerful procurement of these 'defective' locomotives from a company that was found guilty of price collusion in Germany in 2012. The CEO of PRASA, Lucky Montana, is already facing numerous allegations of corruption. The Minister must immediately place Lucky Montana under suspension without pay and a full investigation on corruption allegations against him be instituted. The Minister must also immediately suspend all these contracts of defective locomotives which are not locally manufactured. This procurement of foreign manufactured locomotives not only is a waste of taxpayers funds but also makes a complete farce of the ANC government claim to be promoting localisation of production, beneficiation and industrialisation.

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