(1) Disciplinary action has been taken against the employees involved in the awarding of the Tender:
(2) The Auditor General of South Africa (AGSA) in the report for the period ended 31 March 2022, identified that the award to Premifield for the leasing of diesel locomotives was irregular. The auditors recommended an immediate forensic investigation in this regard. The auditors also cautioned PRASA leadership to ensure that there is sufficient and continuous monitoring of supply chain activities, not only on large contracts but also on day-to-day awards, given the significant inherent risk of fraud in this area.
To address the irregularities identified by the audit and put control measures in place, a new tender process is being put in place for the procurement of locomotives in line with the Supply Chain Management prescripts and policies for the current financial year.