R7.5 billion PRASA train scandal

The Passenger Rail Agency of South Africa (PRASA) is embroiled in a multi-billion rand tender scandal, with MPs raising the alarm of alleged secrecy and barred access to oversight visits.

Earlier this year, reports emerged that PRASA paid contractors around R2.5 billion to refurbish ageing yellow and grey fleet trains that are not used and are dumped in depots.

As part of its General Overhaul project, this initiative is included in a larger R7.5 billion train overhaul tender. News24 reported that another R5 billion is set to be spent by 2027.

“Yet PRASA told the parliamentary portfolio committee in June that it now has no plans to spend the remainder R5 billion,” said Democratic Alliance (DA) Member of Parliament (MP), Thami Mabhena.

This week, Mabhena expressed frustration after PRASA allegedly blocked him from conducting an oversight inspection at its Braamfontein yard and train carriage storage in Johannesburg.

“This yard is at the centre of a R7.5 billion train refurbishment scandal. Despite presenting my valid parliamentary credentials, we were denied entry,” said Mabhena.

Images already show that the trains in this yard are in a state of disrepair and abandonment, with images showing discarded train carriages, broken tracks, collapsed seats, carriages used to store waste and broken furniture, and unsanitary bathroom facilities.

“This raises a critical question: why spend billions on refurbishing trains only to park them in a yard to rot?” said Mabhena.

“Taxpayers are paying for upgrades that never reach commuters, while PRASA’s executive mismanagement goes unchecked.”

PRASA woes

“The sorry state that PRASA finds itself in is the result of poor governance, bad leadership and rampant theft and vandalism spanning over a decade,” noted amaBhungane in its 2022 investigation, PRASA botches critical R7.5 billion train repair tender.

According to PRASA’s most recent annual report, out of a total of 468 stations, 263 stations (56.2%) are currently operational.

PRASA achieved a total of 39.4 million passenger trips in FY 2023/24. In 2011, it was conducting 522 million passenger trips a year, according to the organisation’s annual report. 

The 2015 Public Protector report Derailed detailed systemic maladministration, irregular tender awards, and conflicts of interest involving senior officials, including cases where individuals with PRASA ties secured contracts through questionable means.

A 2020 GroundUp article reported whistleblower allegations that former officials and associates benefited from contracts worth billions, sometimes by forming companies after leaving PRASA.

In early 2025, there was a Hawks raid on PRASA’s Braamfontein headquarters linked to forensic investigations into two R18 billion signaling contracts.

This followed whistleblower claims of fraudulent payments and tender awards to companies potentially connected to former officials.

Then, Transport Minister Barbara Creecy announced that law firm Webber Wentzel had been appointed to investigate allegations of corruption.

“These will be investigations which will include both the relevant officials named by the whistleblower as well as board members,” said Creecy.

“We will look at all aspects: alleged procurement irregularities, alleged fraudulent payments. We will review compliance with bond security requirements, allegations of non-payment of 16 companies and also allegations of awarding unlawful contracts.

The minister added that the investigation will also assess compliance with the legal and regulatory frameworks in relation to the awarding of these contracts.

The Auditor General (AG) has been instructed to conduct real-time audits of all large procurement processes at the entity.

The Minister emphasised the importance of the board, management, and workers of PRASA continuing to focus on the recovery of priority lines, the rehabilitation of stations, and the renewal of signaling.

These efforts aim to increase train slots and ensure that passengers can travel to work and school cheaply, safely, and on time.

“Over the past two and a half years, important work has been done by PRASA to restore train services on 31 out of 40 priority lines to rehabilitate hundreds of stations vandalised.”

We must continue this work so that PRASA’s passengers can get the rail system they deserve,” Creecy added.

PRASA did not respond to requests from Newsday for comment.

Other images from the PRASA Braamfontein yard