This article is the first in a series of articles on corruption in PRASA's dealings with a front company called Swifambo Rail Leasing. It focuses on Vossloh, a European rail technology company, which made billions of rands through a dubious partnership with Swifambo.
In 2018, the Supreme Court of Appeal upheld a decision by the Johannesburg High Court declaring the contract corrupt. The court said that Swifambo had acted as nothing but a front for Vossloh in the deal.The locomotives supplied by Vossloh, known as the Afro4000, were meant to improve long distance passenger services between South African cities, but were revealed to be too tall for South African railways. Yet PRASA ended up paying Swifambo R2.7-billion for the trains.
That same year, Vossloh opened its South African headquarters, Vossloh Southern Africa Holding Company, in Midrand, Gauteng. A year later, in 2013, it landed the"megacontract" for the locomotives for PRASA through its front company, Swifambo. At the time Vossloh España agreed to partner with Swifambo to provide the trains, Vossloh AG's profit was declining. The company's annual report for the year ending 2011/2012 showed a 5.7% decline in sales.
Vossloh had no legitimate reason to pay Mabunda, but so far nothing has come from the Reserve Bank's report. There does not appear to have been any further investigation into whether these payments were potential kickbacks for Mabunda's role in securing the billion rand contract. However, PRASA's spokesperson Andiswa Makanda has told Open Secrets that the agency believes the Hawks are prioritising the case and the agency is"cooperating with law enforcement agencies involved in the investigations". And the Special Investigating Unit , which investigates matters referred to it by the Presidency, announced in February 2024 that its eye was now on the Swifambo contract, and investigations into Mashaba and PRASA are underway.