amaBhungane | Prasa botches critical R7.5bn train repair tender | Business

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Prasa faces the threat of total collapse after shedding millions of customers, and haemorrhaging revenue over the past four years. Now its handling of a R7.5 billion overhaul and maintenance tender has the potential to deepen the existing crisis.

Only 8% of Prasa’s old trains are in service but the company has awarded a critical R7.5-billion coach maintenance tender to companies who allegedly do not have the right experience or capacity.

The general overhaul tender to refurbish and repair Prasa's old and wrecked trains is a critical element of the entity's R173-billion modernisation programme to transform commuter-rail infrastructure, through new electric trains, signalling technology, depot and station upgrades. Passenger numbers have dropped to just 3% of the figure for a decade ago. In 2011, Prasa was conducting 522 million passenger trips a year, according to the organisation's annual report. In the past financial year, it managed just 17 million.that, like the security contracts, Prasa cancelled its component and general overhaul maintenance contracts in 2019 after the auditor-general found that these contracts were irregularly awarded in 2009 and extended since.

However, amaBhungane's analysis of tender documents, email communication and multiple interviews with sources close to the process suggests that companies with the technical experience and capacity to do the work were arbitrarily excluded in favour of companies that did not have the requisite capacity, facilities or equipment when they received the award.

"Are we awarding tenders and then allowing people on to site who then have to be taught how to do the work?" the Democratic Alliance’s Tim Brauteseth asked."For me it is absolutely nonsensical." "The [general overhaul] programme and the technical and maintenance support panel that we now have in place is really earmarked to address these challenges that we see with the existing fleet," Emeran said.

In July, director Pulane Kingston, the daughter of ANC stalwart Mendi Msimang and former health minister Manto Tshabalala-Msimang, filed a court application to interdict, review and set aside the awards made by Prasa. In her papers, Kingston also accused Prasa of appointing contractors that are"not financially stable, are fraudulent and corrupt, do not have the technical capability, and do not have the requisite experience in the industry".

TMH's lawyers argue that the company’s financial stability was a non-issue because it was not in financial distress at the time that Prasa awarded the contract in April. But Prasa's baffling decision not to inform Naledi about the outcome of its bid, led Judge Norman Manoim to conclude that it had"established at least prima facie… that Prasa's decision to refuse its bid was inconsistent with its approach to approve the bids of the other two successful tenderers".

A second bidder said their company had spent millions setting up their facilities to meet the tender requirements and, despite being unsuccessful, was told by Prasa that"you'll definitely be part [of the contract], because they don't have enough guys, they are going to add some extra, and they don't want to lose our skills, so they would like to ask us to please just wait for them," said the bidder.

"TE has received sub-contracting requests from companies that were successfully awarded provision on the Prasa [general overhaul tender]," said Molefe."This just goes to show TE's capacity and capability which should be the subject matter of fair consideration." By this point, Prasa had been forced to share the record of decision as part of the Naledi case, which revealed that curious changes were introduced when the tender went to the board for approval.

Ironically, it was Prasa's concern about irregular expenditure and exposure to litigation that would cull most of the more experienced firms. "The view was that Transnet Engineering, FSE & Mbita JV, Pamodzi and Thaleka should have been disqualified for failing to meet Stage 1 mandatory requirements," Ramatlakane reported.After some debate, it was decided that Naledi's bid would be put on hold until its litigation with Prasa – which related to outstanding payments on a previous contract – had been resolved, a decision that Judge Manoim would later call"entirely unfair" in his judgment.

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Who awarded the tender? There’s your guilty one! Lock them all up!!

A bunch of mamparas that doesn't know how to run it, never has and never will. But they know how to loot and steal the entity bankrupt.

What is the useless minister mrfixfokol doing? Fokol as usual.

MbalulaFikile what say you about this latest cluster fuck on your watch?

Personally, I know it is totally collapsed.

Thank you anc

It waz by design to collapse Prasa and privatize it.

Viva mbalula viva anc.

Everything For Free. Open borders. Just help yourself.

luqmaanrawat72 Prasa can NEVER make a comeback! Too much of the infrastructure has been destroyed and the taxi industry now provides transport to Prasa's old passengers, and won't give them up! Prasa is throwing good money after bad!

They indirectly want to destroy Transnet by taking its facilities and the work that it was supposed to do... this can't be allowed HeadofficeUntu SATAWU1 what are you guys doing? MbalulaFikile ANCNationalConference

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