Shady Prasa Contracts: Minister Dipuo Peters to Account for R24 Billion


Minister Dipuo Peters must account for the R24 billion Prasa contracts currently investigated for corruption, vows the Democratic Alliance (DA) party.

BuzzSouthAfrica gathered that the opposition party will request of the Standing Committee on Public Accounts (Scopa) to summon the Minister of Transport.

She must present a plan on how she will hold all relevant parties accountable, charged the DA after it was revealed that 142 Prasa contracts worth R24 billion are being investigated for possible corruption.

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The party related that it interrogated Popo Molefe, Prasa Board Chairperson, over the R4 billion irregular expenditure recorded for the financial year.

In line with that, DA affirmed that “the PFMA (Public Finance Management Act) which gives effect to Section 216 (1) of the Constitution in prescribing measures to ensure both transparency and expenditure control in each sphere of government, does so by introducing Generally recognised accounting practices (GAAP).

This, together, with transparency, lacked in Prasa. Adequate expenditure controls were virtually absent and to top it all a lack of consequence management is evident.”

Specifying that Prasa was one the of six entities and departments responsible for 30% of the total irregular expenditure, DA noted that “the A-G report highlighted the importance of leadership and oversight.

With these clearly lacking, the entity recorded a loss of R2.8 billion in the 2015/16 financial year,” added the party.

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The foregoing prompted DA to request the committee to call the Minister to account for the lack of oversight at Prasa.

“International credit rating agencies are in the country this month to review South Africa’s sovereign rating amid concerns that the country may be downgraded to junk later next month.

“Among many issues, they are expected to be looking at burning points such as irregular and wasteful expenditure. They are also going to be looking at governance in the country’s parastatals and the prevailing political landscape.

“Prasa has been cited as the worst performer with regards to possible corruption and maladministration, which does not bode well for our country’s rating prospects.

“The failure of the department to spend finances and procure by the book in Prasa left the door open for conflicts of interest and possible corruption,” stated the party.