ANALYSIS: Prasa’s R5.6bn Siyangena scandal demands NPA action
Former Passenger Rail Agency of South Africa boss Lucky Montana, along with his alleged corruptors and their enablers, could be facing charges for their alleged crimes.
The Prasa/Siyangena scandal, involving former Passenger Rail Agency of South Africa (Prasa) boss Lucky Montana, is a complex case of alleged corruption stretching over a decade. The Special Investigating Unit (SIU) recently secured an interim preservation order for two properties that Montana acquired through alleged corrupt means, prompting calls from the National Prosecuting Authority (NPA) to institute prosecutions in relation to this matter.
The scandal began when Prasa awarded a R90-million contract to Siyangena Technologies in 2010 for the installation of CCTV cameras, access gates and related equipment at seven train stations. This was part of an integrated security access management system (Isams) project, which Prasa executives claimed was urgent and necessary due to the upcoming FIFA World Cup in June. However, with only months to spare, the project's completion was deemed unlikely.
Despite concerns from Prasa's asset management unit, Prasa leadership proceeded with the contract, which was awarded without following a lawful procurement process or budget. Internal Prasa documents were manipulated to conceal the unlawful nature of Siyangena's appointment. The high court ruled that Montana, as Prasa's CEO, ignored procedures, bypassed committees and manipulated documents to favor Siyangena's appointment.
Siyangena's initial R90-million contract was followed by a R1.9-billion deal to perform work at 62 train stations. The cost per station ballooned from R2.5-million to R31.5-million as the project scope expanded. Montana and other Prasa executives, such as Luyanda Gantsho and Chris Mbatha, played key roles in this alleged scheme, manipulating documents and bypassing procurement systems to benefit Siyangena.
This case highlights the strategy of channelling alleged kickbacks through property transactions and the crucial role of investigative journalism in exposing such dealings. However, it also emphasizes the need for law enforcement bodies to swiftly address corruption revelations exposed by credible news platforms.
Written by urgent.news from Daily Maverick's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
