Molefe: Board "vindicated" by PRASA court ruling
3 July 2017
Johannesburg - PRASA board chairperson Popo Molefe says the state-owned rail entity’s board feels vindicated by Monday’s High Court judgment to review and set aside the company’s controversial contract for new locomotives.
Johannesburg High Court Judge J Francis on Monday ruled that PRASA’s R3.5 billion contract with Swifambo Rail Leasing for new locomotives, which was signed in 2013, must be set aside. The contract value later ballooned to more than R5 billion, of which nearly R4 billion has been paid by PRASA to Swifambo.
The court, in its ruling, cited concerns over the apparently corrupt manner in which the contract was awarded.
“Corruption will triumph if this court does not set aside the tender,” the court found.