LIVE FEED: State capture inquiry - July 24, 2020
Johannesburg - The Zondo commission resumes on Friday morning and will hear testimony related to the Passenger Rail Agency of South Africa (Prasa).
The inquiry will hear evidence from Judge Makhubela - who had previously served as the chairperson Prasa's interim-board.
The last witness who gave Prasa-related evidence was Fani Dingiswayo, a suspended general manager at the Passenger Rail Agency of South Africa (Prasa).
He told the inquiry how officials feared to scrutinise certain contracts awarded by the state-owned company for fear of reprisal.
Dingiswayo said when he was first appointed, the first controversial contract he handled was that involving a company called Siyaya. Siyaya was a company run by a man, Makhensa Mabunda, who was politically linked to former Prasa CEO Lucky Montana. Mabunda had worked with Montana while they both served as director-generals at the department of public enterprises.
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When Montana was appointed at Parasa, Mabunda appears to have benefited from contracts awarded by Prasa.
Dingiswayo said he was warned not to scrutinise the Siyaya contract too much. Dingiswayo said he had several concerns about the Siyaya contract which saw Prasa's technical division being outsourced. For every component of fuel that Prasapurchased for its fleet, Siyaya would receive 20c. According to Diginswayo this disadvantaged Prasa as the company could have been in a position to negotiate fuel with suppliers directly, but the SOE was stuck with procuring fuel through Siyaya.
Dingiswayo also used other examples of entities that did business with Prasa which were known as being off-limits. These organisations included; Prodigy which was linked to politically connected businessman Roy Moodley.
"On the Siyaya matter, someone whispered in my ear that do not scrutinise too closely. You learn very quickly that there are some holy cows. That everything that relates to certain companies or service providers must not be scrutinised too closely. Even in places where there are procurement issues.