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The Spanish authorities are investigating key figures in Prasa’s infamous Vossloh España/Swifambo “too-tall train” deal.
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Makhensa Mabunda, who made tens of tens of millions of rand on the deal, is beneath investigation for alleged corruption.
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The Hawks investigation into the deal, began in 2015, has stalled. Meanwhile Prasa appears bent on nonetheless shopping for the “too-tall” trains.
The Spanish authorities are investigating corruption on the Passenger Rail Agency of South Africa (Prasa). Meanwhile South African regulation enforcement – the Directorate for Priority Crime Investigation (the Hawks) and the National Prosecuting Authority (NPA) – have taken no action for 5 years.
On 25 July, South Africa’s Department of Justice announced that it obtained a request for mutual authorized help from Spain concerning “alleged corruption by Mr Makhensa Mabunda and others, acting on behalf of Prasa for the supply of locomotives by a Spanish company, Vossloh Espana Sau”.
These requests had been obtained on 9 March 2022 and 11 April 2022.
According to the press launch, the NPA and Interpol are gathering proof. It said that “a court date is awaited from the office of the DPP [Director of Public Prosecutions]”.
Mabunda was one of many key organisers and profiteers from the Swifambo deal, which resulted in Prasa shopping for locomotives that got here to be often known as the “too-tall trains” deal. The deal was not simply corrupt and glued in favour of Vossloh España, however the locomotives, which had been meant to service long-distance routes, exceeded the utmost peak for South Africa’s strains.
The locomotives had been additionally a hazard to the trains and to rail infrastructure.
Prasa paid R2.7 billion to Swifambo, the entrance firm arrange by Vossloh. Swifambo transferred R1.8 billion to Vossloh. In return, Prasa obtained 13 locomotives (R200 million per locomotive), none of which could possibly be operated safely.
According to news reports, Mabunda obtained R75 million from Vossloh España. A circulate of funds evaluation offered to the Judicial Commission of Inquiry into Allegations of State Capture (Zondo Commission) by Swifambo’s liquidators, confirmed that Mabunda and firms beneath his management obtained R63 million from Swifambo’s holding firm, and an extra R17 million from Swifambo itself.
The Zondo Commission heard proof that Mabunda’s S-Group of firms obtained over R1 billion from Prasa for various contracts.
Commuter activist group #UniteBehind instructed GroundUp that they “applaud the Spanish government and its criminal investigation authorities for finally taking action on corruption that was part of the destruction of commuter rail services in South Africa”.
Since 2017, #UniteBehind has been calling for the prosecution of Mabunda and others concerned within the Swifambo deal. It picketed in 2019 exterior the NPA’s offices, and outside the German consulate. In 2015, Vossloh España, primarily based in Valencia, was sold by its German parent company, Vossloh, to Swiss rail firm Stadler Rail AG.
The Hawks and NPA have up to now did not prosecute any folks chargeable for the Swifambo/Vossloh España tender.
In 2018, the then-Prasa chairperson Popo Molofe won a case against the Hawks to compel the company to finalise investigations into the Swifambo deal, amongst others. Despite this, no additional action has been taken.
Ryan Sacks, a forensic auditor appointed by the Hawks to research the Swifambo deal in 2015, instructed the Zondo Commission a flow-of-funds report was given to Brigadier Mmeli Makinyane and one other member of General Alfred Khana’s group on 19 April 2017. After that Sacks heard nothing farther from the Directorate for Priority Crime Investigation.
Chief Justice Zondo rejected the reason by the Hawks on the stalled investigation into Swifambo, saying that it didn’t stand scrutiny, and that the Hawks inaction was “disturbing”.
Judgments – within the High Court in 2017 and within the Supreme Court of Appeal in 2018 – discovered that Swifambo was a entrance for Vossloh España, and that the deal was riddled with corruption, with folks working from inside Prasa to repair the deal for Vossloh/Swifambo. The SCA discovered that “Swifambo’s real role was undoubtedly to enable Vossloh to become the real bidder for the tender”.
In his report into state seize at Prasa, Chief Justice Zondo really helpful that former Prasa CEO Lucky Montana, former Prasa Chairperson Sfiso Buthelezi (present Chairperson of Standing Committee on Appropriations), Swifambo’s CEO Auswell Mashaba, Mabunda, Prasa’s former chief engineer Daniel Mthimkulu and others concerned within the tender award must be prosecuted.
Read:
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The Zondo Commission heard proof of Mabunda’s involvement within the Swifambo deal from the outset, when Mashaba, who would turn into Swifambo’s CEO, was approached by Mabunda to guide the entrance firm. Mabunda was a former colleague of Montana within the Department of Public Enterprise.
Despite this background and the scandal surrounding the “too-tall trains” deal, Prasa Chairperson Leonard Ramatlakane wants to use these trains. In March 2020, GroundUp reported on Prasa and the Department of Transport’s efforts to maintain the deal alive. Ramatlakane alleged that the reporting on the locomotives’ unsuitability was primarily based on false info. But Ramatlakane’s claims have been rebutted by Pieter-Louis Myburgh, the journalist that broke the too-tall practice story.
“None of the companies and people involved should be allowed to profit from the racketeering and corruption,” #UniteBehind instructed GroundUp.
GroundUp sought remark from the Spanish prosecutors, who stated they might not remark. The NPA, Hawks, and Mabunda had been contacted however didn’t reply. Interpol instructed GroundUp that it “does not comment on specific cases or individuals except in special circumstances and with the approval of the member country concerned”.
© 2022 GroundUp. This article was first printed here.