Prasa: DA requests probe into Myeni deal

12 September 2016

The DA will request that the Public Protector, Adv. Thuli Madonsela, to instruct Werkmans – currently busy with a forensic investigation into tender irregularities at Prasa – to specifically include the R16 million Gibela deal involving SAA Chairperson Dudu Myeni’s son, Thalente, in its terms of reference.

The remedial action in Adv Madonsela’s report entitled Derailed, included the commissioning of a forensic investigation into all Prasa contracts or tenders over R10 million awarded between 1 April 2012 and 30 June 2015. This deal falls within the remit of these terms of reference prescribed by the Public Protector and should thusly be included in the ongoing investigation.

It has now been revealed that Myeni’s son and other politically-connected stakeholders in Prasa's R51 billion contract for new passenger carriages have cashed in on their shares in the already dubious tender, before a single new train has been built. According to reports, JSE-listed tech giant EOH earlier this year paid R16.5m for 100% of the shares in New Africa Rail (NAR), French manufacturing giant Alstom's BEE partner in the contract. 

Thalente Myeni, “ANC tycoon” Monde Africa and Sesinyi Seopela, the late former ANC Youth League leader Peter Mokaba's bodyguard, were NAR's local shareholders when the Alstom-led Gibela consortium won Prasa's R51bn contract for the supply of 3 600 new passenger carriages in 2012.

Due to the political connections of those involved, the deal exceeding R10 million and also falling within the Derailed probe timeframe, I will write to the Public Protector today, to request her to extend her investigation into the Gibela deal. 

Corruption steals opportunities, creates unfairness, damages our economy, and hinders service delivery. The DA will not rest until this matter is fully investigated and action taken against all those found guilty. 

Issued by Manny de Freitas, DA Shadow Minister of Transport, 12 September 2016