Treasury questions R1bn Prasa deal linked to Paul Langa firms

Prasa security contracts are under scrutiny after a Sunday Times investigation linked more than R1 billion in payments to firms tied to ANC veteran Paul Langa. The report has put the rail agency back in the spotlight at a time when public confidence in its procurement processes remains fragile.

Treasury questions backdoor procurement deal

According to a Sunday Times investigation, documents show Prasa tapped into the Airports Company of South Africa’s security panel in July 2021, then channelled work to Reshebile Aviation and Protection Services and later Reshebile Aviation Solutions.

Treasury said the piggybacking arrangement did not apply to Prasa or Acsa, which raised questions about whether the deal met procurement rules.

Invoices seen by the newspaper show RAPS billed Prasa between R16 million and R18 million a month before it was liquidated in March 2024. Prasa then moved the work to Ras without a fresh procurement process or service-level agreement.

The company told the Sunday Times, ‘Prasa accordingly updated and approved its SCM policy and procedures to provide for participation in contracts competitively awarded by other organs of state.’

Procurement experts say cases involving alleged irregular procurement can have lasting consequences for public confidence in state institutions. Paul Vos, Regional Managing Director of the Chartered Institute of Procurement & Supply (CIPS) Southern Africa, has argued that procurement remains one of South Africa’s biggest governance risks because ‘accountability and professional capability have not kept pace with legislative reform’.

He added that rebuilding public trust depends on stronger oversight, consistent consequence management and transparent procurement processes. The latest allegations involving Prasa are likely to add to calls for greater accountability as scrutiny over state-owned entities continues.

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