National Treasury must conduct investigation into contracts, not Prasa
3 September 2015
Following the public announcement today by the Prasa board of steps they will take to address problems at the public entity, the DA will request an explanation as to why they have decided that only an “internal audit” of contracts awarded above R10 million be conducted. The Public Protector, Adv. Madonsela, was clear in her remedial recommendations that it was the National Treasury which should conduct this critical investigation.
We will also seek clarity as to whether all particulars of financial misconduct that the Public Protector had uncovered have indeed been reported to the National Treasury and the Auditor General – as per her remedial recommendations. Today Dr Molefe referenced only an investigation undertaken by a private firm, again at the behest of Prasa.
Adv. Madonsela found in her report that tender contracts had been improperly awarded and extended to the tune of R355 million. The entity also improperly incurred an over expenditure of R523 792 767. These findings are indeed so serious that it cannot be left to Prasa to internally investigate it alone – especially when a Chapter Nine institution had set out otherwise.
While the DA welcomes efforts by the Prasa board to take the necessary steps to act on the Public Protector’s report, it is crucial that every single recommendation is acted on.
Therefore, in addition to seeking further clarity on the board, the DA will continue to push for the board to appear before the Portfolio Committee on Transport, so that a clear and comprehensive timeline on acting on these recommendations can be provided and monitored. We will also seek regular report backs to the committee in this regard, and that their turnaround strategy is tabled before the committee for scrutiny.
This is the only way to ensure that Prasa is turned around for the better, and that corruption is rooted out, once and for all.
Statement issued by Manny de Freitas MP, DA Shadow Minister of Transport, September 3 2015
