The Supreme Court in Johannesburg has set aside the controversial contract for 70 new locomotives.
The ruling states that corruption will prevail if the contract is met. The trains, of which the first 13 have already been supplied to Prasa, is too high and not suitable for the local rail conditions.
The court found that the black empowerment company who received the tender, Swifambo Real Leasing, performed in essence only a few administrative actions and had no knowledge of the railways. Clearly, it was a money-making scheme under the auspices of black economic empowerment, in which some became wealthy through fraud.
In the end, Swifambo ordered the trains from Spain.
The chairman of Prasa, Popo Molefe, has in the meantime told Swifambo to collect all their locomotives. Apparently, Prasa will also try to recover the billions of funds already paid to Swifambo, but analysts believe that Swifambo no longer has the money and that recovery thereof will be a futile exercise.
Read the original article in Afrikaans on Die Vryburger
South Africa Today – South Africa News
