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The report was prepared by me based on my professional assessment and analysis of relevant facts and data provided to me by the parties as well as in situ visits to several stations where work was performed. – Engineer, Errol Braithwaite.

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Sizwe sama Yende

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An independent engineer has found that a controversially appointed company at the Passenger Rail Agency of South Africa (Prasa) did its work and deserved to be paid in a R5.5 billion contract for installation of security management system.

Prasa withheld about R3 billion payment to Siyangena Technologies (Pty) Ltd, which was appointed on April 30 2010 install the Integrated Security Access Management System (ISAMS).

Siyangena installed ISAMS in 150 stations in three provinces from April 1 2011 to June 30 2019, following its previous appointment to do same job at 10 stations for the purposes of the 2010 FIFA World Cup and the Confederations Cup.

The system intended to enhance safety, access and efficiency of the public rail commuter system through putting in place public address facilities, speed gates and electronic display boards.

Independent engineer, Errol Braithwaite, was appointed early this year to verify and evaluate work done by Siyangena Technologies following an adverse North Gauteng High Court finding in 2020 that painted a picture of massive procurement irregularities during the tenure of former Prasa Group CEO, Lucky Montana.

According to Braithwaite’s report which The People’s Eye has seen, Siyangena Technologies did work worth R5.2 billion but the company was paid R2.936 billion.

The dispute started when Prasa took the initiative in 2018 to have the contract reviewed and set aside at the time when the state-owned parastatal was embroiled in myriad allegations of corruption related to state capture.

The Northern Gauteng High Court found that Prasa failed to act in a manner that was ‘fair, equitable, transparent, competitive and cost effective’ in accordance with the provisions of the Constitution when it awarded the contract to Siyangena Technologies on emergency basis because the world cup was six weeks away from kick off.

The court ruled on October 8 2020 that an independent engineer be appointed to evaluate the contract, hence Braithwaite’s appointment.

Prasa spokesperson, Andiswa Makanda, had not responded to questions at the time of the publication.

Braithwaite said in an affidavit dated August 14 2024 that his report was accurate.

“The report was prepared by me based on my professional assessment and analysis of relevant facts and data provided to me by the parties as well as in situ visits to several stations where work was performed,” he said.

Braithwaite said in his report that despite the court’s ruling on the supply chain management irregularities on the appointment of Siyangena Technologies, he was, in his personal capacity, of the view that the greatest value of destruction on the ISAMS project did not occur because of procurement levels.

“Successful railway systems are run by their line management: technical specialists – engineers and technicians. Not by their functional management: accountants and lawyers and administrators. Yet in Prasa, the hierarchy appears to be inverted. The power balance needs to be corrected,” Braithwaite said.

He recommended that Prasa should consider engaging an external expert team which reports to the CEO to follow up key performance and risk areas and intervene when required to do so.

Former Prasa board chairperson, Popo Molefe, instituted a review of the SOE’s contracts after then Public Protector Thuli Madonsela had published a report titled Derailed which revealed massive corruption involving a number of mega-bucks contracts.

Prasa corruption featured prominently during the Zondo Commission where Molefe explained how he faced resistance from politicians in former president Jacob Zuma’s administration when he took measures to fight corruption.